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Suppose That Country a Is Twice as Good at Producing

Question 9

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Suppose that country A is twice as good at producing widgets as country B.If the currency of B is twice as valuable as the currency of A,


A) the comparative advantage will shift to an absolute advantage.
B) trade will be an improved outcome for both A and B.
C) the comparative advantage could be canceled out.
D) none of the options

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