(This Question Pertains to Material in Appendix A.)

question 8

Essay

(This question pertains to material in Appendix A.)
Explain why, when a country is engaged in international trade as a result of economies of scale, production may move to an endpoint of the PPF.

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Definitions:

National Character

The idea that people in different cultures have different personalities.

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, and a desire to do a task well.

Freudian Theory

Freudian Theory postulates the existence of unconscious mental processes, sexual and aggressive instincts, and the defense mechanisms of the psyche.

Reality Principle

The reality principle is a psychoanalytic concept describing the process of delaying gratification of desires when necessary, based on the understanding of the constraints of the physical and social world.