Assume the standard trade model with two countries (Alpha and Beta) , two goods (food and drink) , and two factors of production (land and labor) . Further assume that Alpha is relatively labor-abundant and drink is relatively labor-intensive. If the countries engage in free trade, Alpha will:
A) export both food and drink.
B) export drink and import food.
C) import both goods.
D) export food and import drink.
Correct Answer:
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