Chapter 1: Introduction to the Global Economy
14. In the case given by the table in #8, if trade takes place along comparative advantage lines between the U.S. and Canada at a ratio of 3 butter per 1 gun, or 1/3 gun per butter, then how much does the U.S. gain if it produces one more unit of its export good and sells this to Canada? a. 1 butter. b. 1/3 butter. c. 0.20 butter. d. 1/2 butter. e. ................
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