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Assume a standard 2-country model in which resources are used to produce either wine or wool, and resources are perfectly transferable between the 2 goods. country a's opportunity cost of 1 case of wine is 5 pounds of wool. country b's opportunity cost of 1 case of wine is 3 pounds of wool. which of the following statements is true if country a and country b decide to specialize and trade? (hint: first determine the good in which each country will specialize.)
Answers: 2
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