Suppose That a Country in the Classical Model Has the Following

question 1

Multiple Choice

Suppose that a country in the Classical model has the following production-possibilities frontier (PPF) :

If, in autarky, the country is producing 700 computers and is located at point M on the PPF, the country would be producing __________ autos. If the country is now opened to trade at a terms of trade of 1 auto: 2 computers (or 1 computer: 0.5 auto) , it would export __________.

• A) 120; autos
• B) 120; computers
• C) 280; autos
• D) 280; computers

---

Definitions:

Means-Ends Chain

A conceptual framework linking consumer behavior with their personal values, where products or services are seen as a means to achieving ultimate life goals or ends.

Lower-Level Objectives

Specific, operative goals that are set to achieve more strategic, higher-level goals within an organization, often short-term and tactical.

Hierarchy Of Objectives

A structured organization of goals, where higher level objectives guide the setting of lower-level, more specific targets.

Means-Ends Chain

A cognitive process that helps in understanding how actions are connected to outcomes, emphasizing the relationship between an individual's means to achieve an end.