An increase in U.S. imports from Mexico will cause a decrease in income for Mexican individuals and businesses

The production possibilities curve represents which of the following?

a. the amount of goods attainable with variable resources. b. the maximum amount of goods attainable with variable resources. c. the maximum combinations of goods attainable with fixed resources. d. the amount of goods attainable if prices decline.

Specialization and exchange

a. generally leads to increased production of some goods at the cost of decreased production of other goods b. causes the production possibilities frontier to shift inward c. increases total production of every good only if the total amount of resources also increases d. alters the allocation of production among individuals or nations, but does not alter total production levels e. allows greater total production of every good without an increase in the total amount of resources