If two countries are each producing two goods and each country begins to specialize in the good in which it has a comparative advantage,what will happen to total (world) output?
A) It will increase.
B) It will be unchanged in both countries.
C) It will rise in one country and fall in the other, but the total is unchanged.
D) It will decrease.
Correct Answer:
Verified
Q27: Table 14-1
Alternate Outputs from One Day's Labour
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Q31: Table 14-1
Alternate Outputs from One Day's Labour
Q33: Table 14-2
Alpha can produce either 18 oranges
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Q35: Table 14-2
Alpha can produce either 18 oranges
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