If the trade line that passes through the production point on the PPC has a slope that is shallower than the slope of the PPC at the same point, then
A) the country can get greater gains from trade if it moves production away from the vertical axis.
B) the country can get greater gains from trade if it moves production toward the vertical axis.
C) the country cannot improve on its gains from trade.
D) There are no gains from trade in this example.
E) There is not enough information to tell how it can improve its gains from trade.
A
You might also like to view...
If the state uses a uniform standard, show that such a ruling would not be cost-effective. Which firm should be abating more, and which firm should be abating less?
Consider the environmental problem created by two paint companies that release chromium wastes into a nearby stream. The state authorities set a standard for the waterway that requires a combined abatement level (A) for chromium of 15 units. Suppose that the two firms, firm 1 and firm 2, face the following marginal abatement cost equations: MAC1 = 3.2A1 and MAC2 = 0.8A2, where costs are measured in thousands of dollars.
If demand is taken into account, firms that use cost-plus pricing can adjust price by
A) letting sales fall, but hold the markup constant if demand falls. B) lowering markups on price-elastic goods and raising markups on price-inelastic goods. C) letting sales rise, but hold the markup constant if demand rises. D) raising markups on price-elastic goods and lowering markups on price-inelastic goods.
The FHLBS gives loans to S&Ls and thus performs a function similar to the ________ for commercial banks
A) Federal Reserve B) U.S. Treasury C) Office of the Comptroller of the Currency D) U.S. Mint
Maximizing the utility of the person with the minimum utility is known as
A. the minimax criterion. B. the maximin criterion. C. the Hicks-Kaldor criterion. D. the Corlett-Hague Rule.