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When Two Countries Specialize and Trade Based on Their Comparative

Question 15

Multiple Choice

When two countries specialize and trade based on their comparative advantage


A) both countries would move to a different point on the existing PPF.
B) the country with the greater comparative advantage moves beyond its PPF while the other falls below it.
C) both countries remain at their original point on the PPF because trade primarily affects consumption.
D) both countries are able to consume at a point beyond the original PPF.

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