Multiple Choice
Use the following to answer questions :
Figure 18-4
-Assume that there is free trade and negligible transportation costs between Country A and Country B.Which of the following is false in reference to Figure 18-4?
A) Country A exports oil.
B) Country B is relatively inefficient in the production of oil.
C) Country B imports oil.
D) Country B consumes more oil than it would in equilibrium without trade.
E) All of the above are true.
Correct Answer:

Verified
Correct Answer:
Verified
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