Refer to the Diagram Below in Which Line AB Is

question 81

Multiple Choice

Refer to the diagram below in which line AB is Canadian production possibility curve and AC is its trading possibilities curve.The international exchange ratio between beef and cheese (terms of trade) :

• A)is the absolute value of slope of line AB.
• B)is the absolute value of slope of line AC.
• C)could lie anywhere between the absolute value of the slopes of lines AB and AC.
• D)cannot be determined on the basis of this information.

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Definitions:

Consumption

The use of goods and services by households or individuals, considered as an economic activity that drives demand and influences economic growth.

Corn

A staple grain used worldwide, serving as a basic food item, a source of livestock feed, and a raw material for biofuel and sweeteners.

Storage

Refers to the act of retaining or securing goods and information for future use.

Consumption

Utilization of products and services by household members.