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If a Country's Opportunity Costs Increase When It Trades One

Question 53

Multiple Choice

If a country's opportunity costs increase when it trades one product for another,


A) the country will stop trading in that product.
B) the country will have a linear production possibilities curve.
C) complete specialization can still occur but only in the product in which the country does not have a comparative advantage.
D) the country will specialize completely in the product in which it has a comparative advantage.
E) complete specialization does not occur.

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