The free trade theories of specialization primarily assume that ________.
A) specialization leads to unemployment, but production gains compensate for job losses
B) resources can move internationally from the production of one good to another
C) resources can move domestically from the production of one good to another
D) countries have objectives other than economic efficiency
Question 2
Which of the following assumptions was made in the original theories of absolute and comparative advantage?
A) Specialized labor seeks efficiency.
B) Labor resources are fully employed.
C) Countries pursue objectives other than economic efficiency.
D) Production networks enable countries to concentrate on particular functions.
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