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PPF - Comparative Advantage and Trade
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Problem 10
PPF - Comparative Advantage and Trade
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2. Introductory Economic Models / PPF - Comparative Advantage and Trade / Problem 10
Problem 10
Why is setting a trade price crucial in determining the terms of trade?
A
It allows for the production of goods that were previously impossible.
B
It prevents any changes in the opportunity costs.
C
It ensures that both parties benefit from the trade.
D
It guarantees that one party will always have a surplus.
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