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Which of the Following Is True If a Country Specializes

Question 73

Multiple Choice

Which of the following is true if a country specializes in producing the goods for which it has a comparative advantage and then trades?


A) Output increases,and everyone in the economy benefits.
B) Income is redistributed toward import-competing industries.
C) There are gainers and losers,but the country as a whole is better off.
D) Losers may outweigh the gainers,and a country may be worse off.

Correct Answer:

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