The welfare impact of a preferential trade agreement depends on the difference between the amount of new trade that takes place because of the agreement and the change in international trade patterns that arises because of it.
Indicate whether the statement is true or false
Question 2
Refer to the table above. If complete specialization occurs, and France has a labor force of 30,000 hours of labor, then after trade begins it will produce
A) 2000 units of grapes.
B) 15,000 units of textiles.
C) 2000 units of grapes and 6000 units of textiles.
D) None of the above.
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