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Chapter 3: Labor Productivity and Comparative Advantage - The Ricardian Model Multiple Choice Questions Countries trade with each other because they are _______ and because of ______. A. different, costs B. similar, scale economies C. different, scale economies D. similar, costs None of the above. Answer: C Trade between two countries can benefit both countries if each country exports that good in which it has a comparative advantage. each country enjoys superior terms of trade. each country has a more elastic demand for the imported goods. each country has a more elastic supply for