Refer to the Graphs. These Production Possibilities Curves

question 118

Multiple Choice

Refer to the graphs. These production possibilities curves

• A) demonstrate that there can be gains from specialization and trade between the two nations.
• B) reflect the law of increasing opportunity costs.
• C) reflect the law of diminishing marginal utility.
• D) imply that specialization will be incomplete.

---

Definitions:

Drawee

The party, typically a bank, upon whom a check or draft is drawn and is expected to pay the stated amount.

Drawer

The party that writes and signs a negotiable instrument, such as a check, instructing a drawee (often a bank) to pay a specified sum to a payee.

Draft

A preliminary version of a document, plan, or proposal that is subject to revision and refinement.

Order

A binding decision rendered by a judge.