Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage in lace, a move toward free trade will:
A. benefit chocolate workers, harm lace workers in the short run, but benefit the nation as a whole.
B. harm chocolate workers in the short run, benefit lace workers, but benefit the nation as a whole.
C. harm chocolate workers in the short run, harm lace workers, but benefit the nation as a whole.
D. benefit chocolate workers, harm lace workers in the short run, but harm the nation as a whole.
Answer: B
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