In the Absence of Trade,a Nation Is in Equilibrium Where

question 195

Multiple Choice

In the absence of trade,a nation is in equilibrium where a community indifference curve:

• A) Lies above its production possibilities curve
• B) Is tangent to its production possibilities curve
• C) Intersects its production possibilities curve
• D) Lies below its production possibilities curve

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Definitions:

Bundle

A bundled package consisting of various products or services sold as one unit.

Preferences

In economics, a description of the needs or desires that consumers use to make choices among different goods or services.

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that provide the same level of utility to a consumer.

Preferences

Individual tastes or choices regarding various alternatives, shaped by factors like utility, satisfaction, and economic conditions.