A country's production possibilities frontier
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What happens to a country's production possibilities frontier if a law is passed prohibiting workers from ever working in an industry other than the one they are currently employed in. How does this affect the gains from trade?
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Solution Summary
The solution examines what happens to a country's production possibilities frontier if a law is passed prohibiting workers from ever working in an industry other than the one they are current employed in. The solution discusses how this affects the gains from trade.
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The country's Production Possibility Frontier remains unchanged, though the country can never reach a point ON the PPF because the ...
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