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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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    Fred Trades 2 Tomatoes to Barney in Exchange for 1
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Fred Trades 2 Tomatoes to Barney in Exchange for 1

Question 31

Question 31

True/False

Fred trades 2 tomatoes to Barney in exchange for 1 pumpkin. Fred and Barney both gain from the exchange. We can conclude that, for Barney, the opportunity cost of producing 1 pumpkin is greater than 2 tomatoes.

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