Given That Countries a and B Each Specialize in the Production

question 42

Multiple Choice

Given that countries A and B each specialize in the production of one good and voluntarily
Trade it for the other country's good, then

• A) only country A can experience positive gains from trade.
• B) only country B can experience positive gains from trade.
• C) both countries can experience positive gains from trade.
• D) both countries experience negative gains from trade.

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Definitions:

Rescinds

To annul, rescind, or abolish a law, order, or agreement.

Deceit

A tort involving intentional misrepresentation or cheating by means of some device.

Injury

Physical harm or damage to a person's body, or harm to one's reputation or emotions in a legal context.

Rescission

The process of unwinding a transaction, returning all parties to their pre-contractual state.