The diagram shows the production possibility curves for two countries, X and Y.
A decrease in productivity moves country X’s production possibility curve from ${X_1}$ to ${X_2}$.
Which statement is correct?
After the change X would export raw materials and import manufactured goods.
2 )
After the change there is no economic basis for trade.
3 )
Before the change Y had an absolute advantage in the production of raw materials.
4 )
Before the change X had a comparative advantage in both products.
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