Trade contributes to prosperity because:
a. every country lacks some vital resources that it can get economically only by trade
b. each country's climate makes it a relatively efficient producer of some goods, and an inefficient producer of other goods.
c. each country's labor force makes it a relatively efficient producer of some goods, and an inefficient producer of other goods.
d. of all of the above.
d
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The utility-maximizing rule:
A) is inconsistent with the law of demand. C) implies a leftward shifting demand curve. B) implies a perfectly elastic demand curve. D) is consistent with the law of demand.
The production possibilities frontier:
A. can show us which possible combinations of goods society should choose, but cannot tell us which points will be inefficient. B. can show all possible combinations of goods but not tell us which combination society should choose. C. cannot show all possible combinations of goods because society is typically inefficient. D. can show the best combination of goods which society should choose.