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Suppose Rice Can Be Produced in China at a Lower

Question 89

Multiple Choice

Suppose rice can be produced in China at a lower cost than in Thailand, while tuna can beproduced in Thailand at a lower cost than in China. International competition will


A) destroy the rice market in both countries
B) drive China to specialize in rice and Thailand to specialize in tuna
C) drive Thailand to specialize in rice and China to specialize in tuna
D) cause both countries to reject international specialization
E) result in lower total output of rice and tuna

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