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Suppose Venezuela can produce petroleum at a lower opportunity cost because of its natural resources, and China can produce clothing at a low opportunity cost
Suppose Venezuela can produce petroleum at a lower opportunity cost because of its natural resources, and China can produce clothing at a low opportunity cost because of its population and level of industrial development.
Which statement below regarding comparative advantage is NOT true?
China has a comparative advantage in clothing production.
Venezuela has a comparative advantage in petroleum production.
Venezuela can produce clothing at low opportunity cost.
China can produce petroleum at high opportunity cost.
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