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    Question

    If two countries trade with each other which is mutually

    beneficial, then their consumption point after the trade will be
    A On PPF Correct Answer Incorrect Answer
    B Inside PPF Correct Answer Incorrect Answer
    C Outside PPF Correct Answer Incorrect Answer
    D None of these Correct Answer Incorrect Answer
    E All of these Correct Answer Incorrect Answer

    Solution

    If two countries trade with each other which is mutually beneficial, then their consumption point after the trade will be outside the production possibility frontier line.

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