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If the production possibilities frontier of one trade partner ("Country A") is bowed out (concave to

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If the production possibilities frontier of one trade partner ("Country A") is bowed out (concave to

If the production possibilities frontier of one trade partner ("Country A") is bowed out (concave to the origin), then increased specialization in production by that country will
A) increase the economic welfare of only Country A.
B) decrease the economic welfare of Country A.
C) not affect the economic welfare of either country.
D) increase the economic welfare of both countries.
E) decrease the economic welfare of Country B.

Textbook

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

Read 130 times

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machukian

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Chako Author

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8 years ago

Correct!

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machukian

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8 years ago

Good luck

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