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    International Economics Study Set 9
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    Exam 6: Increasing Returns to Scale and Monopolistic Competition
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    Larger Countries Will Trade More with One Another; This Is
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Larger Countries Will Trade More with One Another; This Is

Question 113

Question 113

Multiple Choice

Larger countries will trade more with one another; this is empirically supported by:


A) intra-industry trade.
B) increasing returns to scale.
C) the gravity equation.
D) the theory of comparative advantage.

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