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With Trade, a Country Will Maximize Its Economic Well-Being When

Question 17

Multiple Choice

With trade, a country will maximize its economic well-being when it:


A) moves to the highest possible indifference curve.
B) forces the marginal rate of substitution to its lowest possible value.
C) consumes more of both goods than it does in autarky.
D) finds its marginal rate of substitution exceeding its marginal rate of transformation.

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