Which of the following is true?
a. International trade makes it possible for a country's consumption possibilities to exceed its production possibilities.
b. International trade requires that a country's production possibilities exceed its consumption possibilities.
c. A country's production possibilities always equal its consumption possibilities.
d. A country's consumption possibilities can never equal its production possibilities because of leakages in the system.
e. As long as there is full employment of resources, a country's production possibilities will exceed its consumption possibilities even with trade.
A
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Scarcity can best be defined as a situation in which
A) there are no buyers willing to purchase what sellers have produced. B) there are not enough goods to satisfy all of the buyers' demand. C) there is more than enough money to satisfy consumers' wants. D) the resources we use to produce goods and services are limited.
Any output combination outside a production possibilities frontier is associated with unused or
underutilized resources. Indicate whether the statement is true or false