In a Two-Product, Two-Country World, International Trade Can Lead to Increases

question 207

Multiple Choice

In a two-product, two-country world, international trade can lead to increases in

• A) consumer welfare only if output of both products is increased.
• B) output of both products and consumer welfare in both countries.
• C) total production of both products, but not consumer welfare in both countries.
• D) consumer welfare in both countries, but not total production of both products.

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