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