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Nation X can produce with one unit of resource either 8 units of food or 4 units of cloth. Nation Y ...

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Nation X can produce with one unit of resource either 8 units of food or 4 units of cloth. Nation Y ...

Nation X can produce with one unit of resource either 8 units of food or 4 units of cloth. Nation Y can produce with one unit of resource either 3 units of food or 2 units of cloth. If Nation X and Y freely trade goods, and if these are the only two goods they consume, Nation X will likely consume ________ food and will consume ________ cloth.
A) more; less
B) more; more
C) less; less
D) less; more

Textbook

Modern Labor Economics: Theory and Public Policy

Edition: 12^th

Authors: Ehrenberg, Smith

Read 78 times

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