Without trade, the consumption possibilities for two nations are:

A. outside their production possibilities curve.
B. inside their production possibilities curve.
C. along their production possibilities curve.
D. at a point equal to the world production possibilities curve.

Answer: C

Economics

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What is the difference between nominal variables and real variables? Discuss the calculations undertaken to determine the real wage rate and the real interest rate. Explain why the real wage rate and real interest rate are real variables

What will be an ideal response?

Economics

Suppose the interest rate is 8 percent. Consider three payment options: 1 . $200 today. 2 . $220 one year from today. 3 . $240 two years from today. Which of the following is correct?

a. Option 1 has the highest present value and Option 2 has the lowest. b. Option 2 has the highest present value and Option 3 has the lowest. c. Option 3 has the highest present value and Option 1 has the lowest. d. None of the above is correct.

Economics