In the Figure Above, Which Item Allows You to Select

question 62

Multiple Choice

In the figure above, which item allows you to select the export option? ____

• A) item 3
• B) item 2
• C) item 1
• D) item 4

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).

International Trade

The exchange of goods and services between countries, allowing nations to expand their markets and access goods that are not produced domestically.

Absolute Advantage

Refers to the ability of a country, individual, or firm to produce more of a good or service with the same amount of resources than competitors.

Economies of Scale

Refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.