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In a Two-Person, Two-Good Economy, the Gains to Specialization Will

Question 132

Multiple Choice

In a two-person, two-good economy, the gains to specialization will be larger when:


A) one person has an absolute advantage in both goods.
B) neither person has an absolute advantage.
C) there are small differences between the individuals in their opportunity costs of producing the two goods.
D) there are large differences between the individuals in their opportunity costs of producing the two goods.

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