MCQOPTIONS
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| 1. |
If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs ? |
| A. | Trade would depend on difference in demand conditions |
| B. | Trade would depend on economies of large-scale production |
| C. | Trade would depend on the use of different currencies |
| D. | There would be no basis for gainful trade |
| Answer» B. Trade would depend on economies of large-scale production | |