| A) | changes in productive capabilities that can occur in the economy over time.
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| B) | the profits earned from newly found natural resources decreases profits in the traded manufactured goods sector.
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| C) | the possibility that the terms of trade could decline substantially and the country could be worse off after growing.
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| D) | the international spread or “trade” in technology.
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| E) | trade of this nation has no impact on international prices.
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| F) | trade of this nation has an impact on international prices.
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| G) | In a two-good world, and assuming that product prices are constant, growth in the country's endowment of one factor of production, with the other factor unchanged, results in an increase in the output of the good that uses the growing factor intensively, and a decrease in the output of the other good.
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| H) | conducted largely by businesses and focused on improvements in production technologies for existing products and on new production technologies for new or improved products.
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| I) | an attempt to offer a dynamic theory of technology and trade by emphasizing that the location of production of a good is likely to shift from the leading developed countries to developing countries as the product moves from its introduction to maturity and standardization.
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| J) | shifts the production-possibilites curve outward in a manner that is skewed toward one good.
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| K) | shifts the production-possibilities curve outward proportionately.
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