A Country's Newest Ruler Has Decided the Country Will Become

question 59

Multiple Choice

A country's newest ruler has decided the country will become self-sufficient and ceases trade with the rest of the world.The likely outcome of this action will be that the country's citizens will be:

• A) forced to consume less than before if they possessed a comparative advantage in the production of a good.
• B) better off than before if they possess an absolute advantage in the production of a good.
• C) better off than before only if they have the absolute advantage in the production of most goods they consume.
• D) better off than before only if they have the comparative advantage in all goods

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Definitions:

Syndicate

A group of individuals or organizations combined to promote some common interest, often used in reference to underwriting groups for securities offerings.