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Suppose France Can Produce Four Phones or Three Computers with One

Question 47

Multiple Choice

Suppose France can produce four phones or three computers with one unit of labor, and Sweden can produce one phone or two computers with one unit of labor. If France can trade only with Sweden, then the theory of comparative advantage suggests that:


A) France should specialize in producing phones and import computers from Sweden.
B) France should specialize in producing computers and import phones from Sweden.
C) France should produce both phones and computers, and import nothing from Sweden.
D) France should import both phones and computers from Sweden.

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