Trade between two nations is NOT possible if they have:
a. identical indifference curves but different production possibilities frontiers.
b. identical production possibilities frontiers but different indifference curves.
c. different production possibilities frontiers and different indifference curves.
d. identical production possibilities frontiers and identical indifference curves.
Ans: d. identical production possibilities frontiers and identical indifference curves.
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Consider the PPF for office buildings and housing shown in the figure above. Which point in the diagram shows that resources to produce office buildings and housing are being misallocated, unused, or both?
A) point F B) point G C) point H D) point I
Which period of recent U.S. history shows the lowest rates of productivity growth?
A. 1948–1973 B. 1973–1995 C. 1995–2000 D. All periods had similar growth rates.