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The United States Produces Both Automobiles and Computers More Efficiently

Question 114

Multiple Choice

The United States produces both automobiles and computers more efficiently than Mexico.Nevertheless, it is possible that both nations would benefit from trade in these items.The reason for this is


A) the law of comparative advantage.
B) the inflation-unemployment trade-off.
C) externalities.
D) the cost disease of personal services.
E) attempts to repeal the law of supply and demand.

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