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Which of the Following Statements Is True

Question 35

Multiple Choice

Which of the following statements is true?


A) In the absence of trade, the consumption possibility frontier exceeds the production possibility frontier.
B) The slope of the consumption possibility frontier of country reflects the opportunity cost of producing the goods in that country.
C) The slope of a production possibility frontier reflects terms of trade between the goods traded.
D) If countries specialize and trade according to comparative advantage, then the consumption possibility frontier can exceed the production possibility frontier.

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