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
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An increase in US real interest rates relative to the rest of the world can be expected to
a. encourage investment spending by US firms in the US b. decrase the capital flow into the US c. cause a net outflow of foreign captial from the US d. increase the international value of the dollar e. improve the situation for exporters
What characterized the 1950–1962 economy (from the Korean War to the last year of John F. Kennedy's presidency)?
(a) Significant inflation (b) Deflation (c) High unemployment (d) Falling prices and wages