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If Two Countries Have Identical Production-Possibilities Frontiers but Different Tastes

Question 21

Multiple Choice

If two countries have identical production-possibilities frontiers but different tastes, it is possible for each country to gain from trade with the other country


A) in the Classical model but not in the neoclassical model.
B) in the neoclassical model but not in the Classical model.
C) in both the Classical model and the neoclassical model.
D) in neither the Classical model nor the neoclassical model.

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