Suppose the World Economy Is Composed of Just Two Countries

question 233

Multiple Choice

Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at different levels of economic efficiency. The production possibilities curves for the two countries are shown in the graphs. The assumption made about the domestic production opportunity costs in both countries is that they are

• A)constant.
• B)variable.
• C)increasing.
• D)decreasing.

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Definitions:

Caring Attitude

Demonstrating genuine concern and empathy towards others’ feelings and needs.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Control of Attitude

The ability to regulate one's own emotional response or outlook, particularly in challenging or uncertain situations.

Positive Attitudes

Describes a mindset that focuses on the good aspects of situations, promotes optimism, and contributes to well-being.