Multiple Choice
Assuming labour forces of equal size, the production possibilities curves below suggest that West Mudsville has:
A) lower wages than workers in East Mudsville before trade but equal wages after trade.
B) absolute advantage over East Mudsville for both baseballs and, baseball hats.
C) no advantage over East Mudsville.
D) advantage of East Mudsville for baseballs and not baseball hats.
Correct Answer:

Verified
Correct Answer:
Verified
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