Trading Partners Should Specialize in Producing Goods in Accordance with Comparative

question 1

Multiple Choice

Trading partners should specialize in producing goods in accordance with comparative advantage,then trade and diversify in consumption because

• A) out-of-pocket costs of production decline
• B) free trade areas protect infant industries
• C) economies of scale are present
• D) manufacturers face diminishing returns
• E) more goods are available for consumption

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