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Consider a Country That Is Initially Autarkic and Then Engages

Question 75

Multiple Choice

Consider a country that is initially autarkic and then engages freely in international trade. If a country has a comparative advantage in the production of soybeans, it will most probably


A) increase the production of soybeans to allow for the export of soybeans.
B) derive no advantage from any trade in soybeans.
C) increase the production of soybeans for domestic consumption.
D) decrease the production of soybeans for domestic consumption.
E) import soybeans

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