What is the effect of opening trade between countries?
A) Living standards rise in the country with more productive, higher-paid workers.
B) Total world production reduces, as both countries specialize in specific goods.
C) Living standards fall in the country with less productive, lower-paid workers.
D) Both countries can exploit absolute advantage and increase productivity.
Correct Answer:
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Q8: Which of the following is Canada NOT
Q10: What basic concept related to international trade
Q11: Which of the following best describes a
Q12: What matters most in determining the efficient
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Q14: If nations begin to specialize in production
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