If the country DECREASES its production of labor-intensive goods, the opportunity cost of producing labor-intensive goods

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter21: International Trade And Finance
Section: Chapter Questions
Problem 16SQ
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Suppose that a country with a bowed-out PPF is operating efficiently.  The country can produce either capital-intensive goods or labor-intensive goods.  If the country DECREASES its production of labor-intensive goods, the opportunity cost of producing labor-intensive goods

   

remains constant.

   

cannot be determined from the given information.

   

increases.

   

decreases.

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