If the Production Possibilities Frontier of One Trade Partner ("Country

question 20

Multiple Choice

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 both countries.
• B) increase the economic welfare of only Country A.
• C) decrease the economic welfare of Country A.
• D) decrease the economic welfare of Country B.
• E) not affect the economic welfare of either country.

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