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Assume That Economy a and Economy B Have the Same

Question 114

Multiple Choice

Assume that Economy A and Economy B have the same resources, but that individuals in Economy A have specialized whereas individuals in Economy B have not. Given this information, you can determine that


A) Economy A will have a higher output than Economy B.
B) Economy A will have a lower output than Economy B.
C) Economy A and Economy B will have identical outputs.
D) individuals in Economy A will have lower incomes than individuals in Economy B.

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