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Each Person in Country X Can Produce 1 Ton of Steel

Question 16

Multiple Choice

Each person in Country X can produce 1 ton of steel or 1 ton of coal.Each person in Country Y can produce 3 tons of steel or 4 tons of coal.Assuming constant costs, X will:


A) export steel and import coal.
B) import steel and export coal.
C) import both coal and steel.
D) export both coal and steel.
E) not trade at all.

Correct Answer:

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