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.
Correct Answer:
Verified
Q48: The slope of the pre-trade production possibilities
Q49: If a country has an absolute advantage
Q50: To measure the gains from trade, we
Q51: A country can have an absolute advantage
Q52: The gains from trade are larger for
Q54: Consumption can only occur along the pre-trade
Q55: The principle of comparative advantage implies that
Q56: The principle of comparative advantage
A)does not hold
Q57: A country cannot have a comparative advantage
Q58: Country A has a comparative advantage over
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