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PPF - Comparative Advantage and Trade
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PPF - Comparative Advantage and Trade
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2. Introductory Economic Models / PPF - Comparative Advantage and Trade / Problem 6
Problem 6
How does trade increase overall value and consumption for both parties involved?
A
By allowing each party to specialize in goods where they have a comparative advantage.
B
By reducing the total amount of goods available.
C
By limiting the variety of goods available to each party.
D
By increasing the production costs for both parties.
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