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If the Opportunity Cost of Manufacturing Machinery Is Lower in Canada

Question 133

Multiple Choice

If the opportunity cost of manufacturing machinery is lower in Canada than in Britain and the opportunity cost of manufacturing sweaters is higher in Canada than in Britain,then Canada will:


A) export both sweaters and machinery to Britain.
B) import both sweaters and machinery from Britain.
C) export sweaters to Britain and import machinery from Britain.
D) import sweaters from Britain and export machinery to Britain.

Correct Answer:

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