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Suppose the United States Is More Productive Than China at Making

Question 107

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Suppose the United States is more productive than China at making both T-shirts and cell phones. The theory of comparative advantage suggests that consumption in both countries will:


A) increase if the United States produces both goods.
B) increase if each country specializes in producing the good with a lower opportunity cost.
C) not change if China produces either T-shirts or cell phones.
D) remain unchanged.

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