The Following Diagrams Show the Production Possibilities Boundaries for Austria

question 105

Multiple Choice

The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes. FIGURE 32-2 Refer to Figure 32-2.Assume that Austria and Switzerland do not engage in international trade.In that case,

• A)Austria will produce all shoes and no bicycles.
• B)Switzerland will produce all bicycles and no shoes.
• C)each country will consume according to comparative advantage anyway.
• D)the downward-sloping lines illustrate each country's consumption possibilities.
• E)each country will produce according to comparative advantage anyway.

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Definitions:

Sociologists

Experts who study society and social behavior by examining the groups, cultures, organizations, social institutions, and processes that people develop.

Culture of Poverty

A concept suggesting that poverty is not just a result of economic insufficiency but is also shaped by values and behaviors passed down within impoverished communities that hinder their members from escaping poverty.

Fatalistic

Pertaining to the belief that all events are predetermined and therefore inevitable, leading to a resignation to outcomes.

Resigned Attitude

A psychological state where an individual accepts a situation or condition as inevitable, often with a sense of powerlessness.