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Suppose That Honduras Opens Its Markets to International Trade

Question 41

Multiple Choice

Suppose that Honduras opens its markets to international trade.As a result of this,the domestic price of coffee decreases.We can conclude that


A) Honduras has a comparative advantage in the production of coffee.
B) Honduras has begun to import coffee into the country.
C) ​the price of coffee in Honduras prior to the opening of trade was lower than the world price.
D) ​Honduras should specialize in the production of coffee.

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