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Suppose Nigeria Has a Comparative Advantage in Oil Production and the U.S.has

Question 50

Multiple Choice

Suppose Nigeria has a comparative advantage in oil production and the U.S.has a comparative advantage in soybean production.If these two countries specialize and trade,which of the following is true?


A) Nigerian oil producers are worse off.
B) Nigerian soybean producers are worse off.
C) U.S.soybean producers are worse off.
D) U.S. oil producers are better off.

Correct Answer:

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