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According to the Factor-Price-Equalization Theorem, Free Trade Between Any Two

Question 46

Multiple Choice

According to the factor-price-equalization theorem, free trade between any two countries equalizes:


A) product prices as well as the prices of individual factors of production between the countries.
B) product prices between the countries but not the prices of individual factors of production.
C) product prices between the countries and factor prices within each country but not between the countries.
D) product prices and factor prices within each country but not between the countries.

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