Figure 3-2 -In Figure 3-2, a Move from a Point Like B

question 96

Multiple Choice

Figure 3-2
-In Figure 3-2, a move from a point like B to a point such as D

• A)is not possible.
• B)can be attained with a more efficient allocation of resources.
• C)can be attained if there is an improvement in technology.
• D)can be attained if unused resources are put into production.

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Definitions:

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than a competitor, leading to more efficient international trade and allocation of resources.

Production Possibilities Line

A graphical representation that shows the maximum possible output combinations of two products or services an economy can achieve when all resources are fully and efficiently utilized.

Trading Possibilities Line

A graphical representation illustrating the maximum amount of one good that a country can trade for another, given fixed resources.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than another entity, forming the basis for trade.