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Snowland and Pledza Are Neighboring Countries

Question 64

Multiple Choice

Snowland and Pledza are neighboring countries.Pledza imports more products than it exports.Over the last decade,Pledza imports from Snowland have been rapidly increasing but not fast enough to offset the exports to Snowland.As a result,Pledza has a(n) _____.


A) domestic gain
B) trade surplus
C) trade deficit
D) absolute advantage
E) comparative advantage

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