Trade can increase the consumption possibilities of nations

Britain's 1992 recession is probably the result of:

A) the struggle to reconcile monetary and fiscal policy. B) the adherence to the ERM, which required Britain to raise interest rates to maintain exchange parity. C) high unemployment rates, which are a product of the generous welfare system. D) poor planning for the conversion to the euro.

Which of the following is not an effective technique for alleviating scarcity?

A) Developing additional resources B) Reducing prices C) Reducing wants D) Substituting intelligently among available goods