Specialization and trade make a country better off because with trade, the country can consume at a point
A) on its production possibilities frontier.
B) on its trading partner's production possibilities frontier.
C) inside its trading partner's production possibilities frontier.
D) outside its production possibilities frontier.
E) inside its production possibilities frontier.
D
You might also like to view...
The fact of increasing opportunity costs means that a production possibilities frontier will
A) be a straight line. B) reach a maximum and then gradually decrease. C) bow outward. D) shift outward over time.
A firm's cost of production equals ________
A. all the costs paid with money, called explicit costs B. the implicit costs of using all the firm's own resources C. all explicit costs and implicit costs, excluding normal profit D. the costs of all resources used by the firm whether bought in the marketplace or owned by the firm
An example of an in-kind benefit is
A. a welfare payment. B. capital gains. C. a charitable contribution of money. D. public housing.
The marginal propensity to import (mpi), where M = imports, is defined as
A) M * Y. B) ?M/?Y. C) M - Y. D) ?M * ?Y.