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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?
Venezuela can produce clothing at low opportunity cost.
China can produce petroleum at high opportunity cost.
Venezuela has a comparative advantage in petroleum production.
China has a comparative advantage in clothing production.
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