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    Macroeconomics Study Set 57
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    Exam 2: Specializationand Exchange
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    When Two Countries Specialize and Trade with One Another, Total
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When Two Countries Specialize and Trade with One Another, Total

Question 41

Question 41

Multiple Choice

When two countries specialize and trade with one another, total production:


A) remains unchanged, but consumption rises.
B) increases, but only if a comparative advantage exists.
C) may increase, depending on trade relations.
D) remains unchanged, as does consumption.

Correct Answer:

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