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According to the Comparative Advantage Model of Trade,to Maximize Its

Question 136

Multiple Choice

According to the comparative advantage model of trade,to maximize its gains from trade,a nation should


A) maximize net exports (or its trade surplus) .
B) export products in which it has a comparative advantage.
C) export as many products as possible by subsidizing domestic producers that could not otherwise compete with foreign producers.
D) create jobs by subsidizing the industries that employ the largest number of workers.
E) subsidize the purchase of imports in order to achieve the highest level of total consumption.

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