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Suppose the U

Question 1

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Suppose the U.S.and Japan both produce airplanes and televisions and the U.S.has a comparative advantage in the production of airplanes while Japan has a comparative advantage in the production of televisions.If the U.S.exports airplanes to Japan and imports televisions from Japan,


A) both countries,as a whole,will be better off.
B) all individuals in both countries will be better off.
C) both countries,as a whole,will be worse off.
D) all individuals in both countries will be worse off.

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