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PPF - Comparative Advantage and Trade
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Problem 1
Problem 2
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Problem 4
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Problem 6
Problem 7
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Problem 9
Problem 10
PPF - Comparative Advantage and Trade
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2. Introductory Economic Models / PPF - Comparative Advantage and Trade / Problem 7
Problem 7
Given the terms of trade, how can both producers achieve consumption levels outside their individual PPFs?
A
By producing more than their maximum capacity
B
By reducing their opportunity costs
C
By increasing their labor force
D
By specializing and trading according to comparative advantage
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