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- Use Times New Roman font 12 for all your answers.
Q. 1. During the Second World War, Germanyâ€™s factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germanyâ€™s production possibilities curve? [10 Marks]
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Q. 2. What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world? [10 Marks]
Q. 3. Are differences in geography behind the differences in absolute advantages? [10 Marks]