Specialization and international trade lead to
A) an outward shift in the production possibilities curve.
B) an inward shift in the consumption possibilities frontier.
C) a lower opportunity cost of domestic production of all goods.
D) an enhanced level of consumption.
D
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What is new about environmental problems today is
a. that for the first time in history we have environmental problems. b. the increased rate at which air and water pollution is occurring in the United States. c. the amount of attention the community now gives them. d. that environmental problems with pollution and garbage disposal have almost completely disappeared.
Within the framework of the AD/AS model, in the long run, output
a. will exceed the economy's long-run capacity. b. will be less than the economy's long-run capacity. c. will converge toward the economy's long-run capacity. d. must equal approximately 95 percent of the economy's long-run capacity.