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If Argentina Has an Absolute Advantage in the Production of Wheat

Question 3

Multiple Choice

If Argentina has an absolute advantage in the production of wheat and Chile has an absolute advantage in the production of copper, then trade


A) enables both countries to move out beyond their previous resource and productivity constraints.
B) does not permit either country to move out beyond its previous resource and productivity constraints.
C) enables both countries to move out beyond their previous resource constraints, but not their productivity constraints.
D) enables both countries to move out beyond their previous productivity constraints, but not their resource constraints.

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