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    Principles of Economics Study Set 8
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    Exam 3: Interdependence and the Gains From Trade
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    Country a and Country B Both Produce Shirts and Shorts
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Country a and Country B Both Produce Shirts and Shorts

Question 157

Question 157

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Country A and country B both produce shirts and shorts. Country B has an absolute advantage producing both shirts and shorts. Is there any condition under which the two countries could gain from trade?

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Yes, if each has a c...

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