Answer the following questions true (T) or false (F)
1. Assume that Finland and Latvia produce only two goods. If Finland has an absolute advantage in the production of these two goods compared to Latvia, Finland can still benefit from trade with Latvia.
2. If a country has a comparative advantage in producing a product, it must also have an absolute advantage in producing that product.
3. If a country has an absolute advantage in producing a product, it may not have a comparative advantage in producing that product.
1. TRUE
2. FALSE
3. TRUE
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