When two countries are specializing and trading with each other, the gains from trade will tend to be greater when
A) there are economies of scale in production.
B) prices rise in both countries.
C) the production possibilities boundaries shift inward.
D) opportunity costs in the two countries are similar.
E) comparative advantages are eliminated.
Correct Answer:
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Q30: The division of the gains of trade
Q31: A country with a domestic market is
Q32: The diagram below shows the domestic demand
Q33: The diagram below shows the (hypothetical)demand and
Q34: The diagram below shows the domestic demand
Q36: The diagram below shows the domestic demand
Q37: According to what economists call the "law
Q38: The existence of any "gains from trade"
Q39: Consider two countries that can produce rice
Q40: The diagram below shows the domestic demand
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