Two parties can capture gains from specialization and trade whenever:
a. One party is twice as good as producing all goods as the other.
b. The opportunity costs of producing each good are the same for both parties.
c. Both parties can produce equal amounts of both goods.
d. None of the above are true.
Question 2
New growth theorists believe that increased economic growth is primarily driven by:
a. higher level of savings.
b. higher level of capital investments.
c. increased foreign investment.
d. technological innovation and ideas.
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