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Assume a Country Is Initially Operating on Its Production Possibilities

Question 28

Multiple Choice

Assume a country is initially operating on its production possibilities curve.If it specializes in the production of a good and trades,the country will:


A) Move to a level of production outside its production possibilities curve.
B) Shift its production possibilities curve outward.
C) Move to a level of consumption outside its production possibilities curve.
D) Shift its production possibilities curve inward.

Correct Answer:

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