Given a Two-Country and Two-Product World,the United States Would Enjoy

question 173

Multiple Choice

Given a two-country and two-product world,the United States would enjoy all the attainable gains from free trade with Canada if it:

• A) Trades at the U.S.rate of transformation
• B) Trades at the Canadian rate of transformation
• C) Specializes completely in the production of both goods
• D) Specializes partially in the production of both goods

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