Multiple Choice
Suppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in auto parts.If the US exports semiconductors to Mexico and imports auto parts from Mexico,
A) both countries, as a whole, will be better off.
B) all individuals in both countries will be better off.
C) both countries, as a whole, will be worse off.
D) all individuals in both countries will be worse off.
Correct Answer:
Verified
Correct Answer:
Verified
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