Suppose that in Paraguay,one of the poorest countries in the Americas,only two of the goods that are produced can compete in world markets,tea and DVD players.Given this success in exporting,Paraguay
A) should specialize only in DVD players since tea production is an old industry.
B) should specialize in the production of tea,since its people are probably too poor to buy DVD players.
C) should stop exporting both goods and produce more food products for its people.
D) is better off producing both goods in which it has a comparative advantage,relative to all other goods.
Correct Answer:
Verified
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