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What phenomenon DIRECTLY relates to gains from trade? a. rationality b. trade-offs c. specialization d. opportunity costs e. scarcity с.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter2: Production Possibilities Frontier Framework

Section: Chapter Questions

Problem 5QP

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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What phenomenon DIRECTLY relates to gains
from trade?
a. rationality
b. trade-offs
c. specialization
d. opportunity costs
e. scarcity

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