The Fact That Resources Are Not Equally Productive in All

question 141

Multiple Choice

The fact that resources are not equally productive in all activities

• A)implies that gains from specialization and trade are unlikely.
• B)implies a linear production possibilities frontier.
• C)follows from the law of demand.
• D)implies that an economy should not produce certain goods.
• E)implies that a production possibilities frontier will be bowed outward.

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Definitions:

Tender Offer

A proposal made publicly by an individual or company to purchase shares from shareholders of a public corporation at a specified price within a certain time frame.

Net Gain

The positive difference between the sale price of an asset after deducting all costs associated with the sale and the original purchase price, reflecting a financial benefit.

Synergy Value

The additional value generated by combining two companies or assets, where the value of the whole is greater than the sum of the individual parts.