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2. Introductory Economic Models
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Problem 1
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Problem 3
Problem 4
Problem 5
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Problem 7
Problem 8
Problem 9
Problem 10
Problem 11
Problem 12
Problem 13
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Problem 15
2. Introductory Economic Models
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2. Introductory Economic Models / PPF - The Price of the Trade / Problem 12
Problem 12
What is the role of comparative advantage in trade?
A
It ensures all producers have the same opportunity cost.
B
It allows producers to specialize in goods they produce at a lower opportunity cost.
C
It eliminates the need for trade.
D
It sets the price of trade equal to the opportunity cost of the producer with the higher cost.
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