In an Open Economy in Which Only Two Goods Are

question 24

Multiple Choice

In an open economy in which only two goods are produced and possibly traded,we would find that

• A) production occurs where the production possibility curve is tangent to a line with the slope equal to the ratio of the world relative prices.
• B) production occurs where an indifference curve is tangent to the production possibilities curve.
• C) consumption occurs where an indifference curve is tangent to the production possibilities curve.
• D) consumption occurs where the production possibilities curve is tangent to a line with a slope equal to the ratio of the world relative prices.

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Definitions:

Carotid Artery

A major blood vessel in the neck that supplies blood to the brain, neck, and face.

Bruits

Sounds heard over the arteries or veins during auscultation, indicative of abnormal blood flow, often due to narrow or blocked vessels.

Exhale

The process of releasing air from the lungs through the mouth or nose.

Tetralogy of Fallot

A congenital heart defect that includes four abnormalities: a large ventricular septal defect, pulmonary stenosis, right ventricular hypertrophy, and an overriding aorta.