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When a Nation First Begins to Trade with Other Countries

Question 271

Multiple Choice

When a nation first begins to trade with other countries and the nation becomes an importer of corn,


A) this is an indication that the world price of corn exceeds the nation's domestic price of corn in the absence of trade.
B) this is an indication that the nation has a comparative advantage in producing corn.
C) the nation's consumers of corn become better off and the nation's producers of corn become worse off.
D) All of the above are correct.

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