Multiple Choice
Given a two-country and two-product world, the United States would enjoy all the attainable gains from free trade with Canada if it
A) trades at the U.S. rate of transformation.
B) trades at the Canadian rate of transformation.
C) specializes completely in the production of both goods.
D) specializes partially in the production of both goods.
Correct Answer:
Verified
Correct Answer:
Verified
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