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If Honduras and Guatemala Each Specialize in Producing the Good

Question 5

Multiple Choice

If Honduras and Guatemala each specialize in producing the good in which they have a comparative advantage and then trade with one another _____ original PPF.


A) both countries would end up at a point to the left of their
B) both countries would end up on a different point on their
C) both countries would end up on a point to the right of their
D) one country would remain on its original PPF, while the other country would end up on a point to the right of its

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