Multiple Choice
Suppose that Honduras opens its markets to international trade.As a result of this,the domestic price of coffee decreases.We can conclude that
A) Honduras has a comparative advantage in the production of coffee.
B) Honduras has begun to import coffee into the country.
C) the price of coffee in Honduras prior to the opening of trade was lower than the world price.
D) Honduras should specialize in the production of coffee.
Correct Answer:
Verified
Correct Answer:
Verified
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