The following economy produces two products.ProductsProduction Possibilities?ABCDEFTanks012345Autos10009508506503500Given the production possibilities schedule above, a combination of three tanks and 350 autos:

A. cannot be produced by society, given its current level of resources and production technology.
B. illustrates the trade-off between tanks and autos.
C. is not attainable because this combination is not listed in the schedule.
D. is attainable but involves the unemployment or inefficient use of some of society's resources.

Answer: D

Economics

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Which of the following is true (assume the small country case)?

A) With a quota, an increase in demand leads to a higher price and more imports. B) With a tariff, an increase in demand leads to a higher price and more imports. C) With either a tariff or a quota, an increase in demand leads to a higher price and more imports. D) None of the above are true.

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