Refer to the Above Diagrams

question 38

Multiple Choice

Refer to the above diagrams.The solid lines are production possibilities curves; the dashed lines are trading possibilities curves.The data suggest that:

• A)West Lothian should specialize in, and export, beer.
• B)both countries will be better off if they do not engage in specialization and trade involving these two products.
• C)West Lothian should specialize in, and export, pizza.
• D)East Lothian should specialize in, and export, beer.

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Definitions:

Real Estate

Property consisting of land and buildings, including the resources and airspace above it, which can be bought, sold, or leased.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which pay periodic interest payments and return the principal at maturity.

Charitable Organization

An entity established for philanthropic purposes, to promote public benefit without the intention of generating profits for owners or stakeholders.

Eli Lilly

An American pharmaceutical company known for developing a wide range of medications, including treatments for diabetes, cancer, and psychiatric disorders.