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Suppose Japan Produces Only Two Goods,rice and Electronics

Question 65

Multiple Choice

Suppose Japan produces only two goods,rice and electronics.If Japan has a comparative advantage in electronics,a move toward free trade will


A) harm electronics workers, benefit rice workers, but benefit the nation as a whole.
B) benefit electronics workers, harm rice workers, but benefit the nation as a whole.
C) harm electronics workers, harm rice workers, but benefit the nation as a whole.
D) benefit electronics workers, harm rice workers, but harm the nation as a whole.

Correct Answer:

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