The Production Possibilities Curve Depicts the Various Combinations of Two

question 32

Multiple Choice

The production possibilities curve depicts the various combinations of two goods that can be:

• A) interchanged among two countries.
• B) produced with a given technology.
• C) consumed with a given quantity of resources.
• D) produced with increments in resources and changes in technology.
• E) consumed as the resources increase.

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Definitions:

Tariff

A tax or duty to be paid on a particular class of imports or exports, used by governments to regulate trade.

Normal Trade Relations

A GATT principle of trade law which requires that WTO member states treat like goods coming from other member states on an equal basis.

GATT

General Agreement on Tariffs and Trade, a multilateral treaty aimed at reducing global barriers to trade and promoting international commerce.

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations.