If Two Countries with Diminishing Returns and Different Marginal Rates

question 6

Multiple Choice

If two countries with diminishing returns and different marginal rates of substitution between two products were to engage in trade,then

• A) the marginal rates of substitution of both would become equal.
• B) the shapes of their respective production possibility frontiers would change.
• C) the larger of the two countries would dominate their trade.
• D) the country with relatively elastic supplies would export more.
• E) the opportunity costs for the smaller country would increase.

Understand the concept of diversity and its significance in educational settings.

Identify and critique the deficit perspective and its impact on educational relationships.

Acquire skills in conducting cultural audits to enhance cultural responsiveness in the classroom.

Recognize the implicit messages conveyed through a teacher's symbolic curriculum.

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Definitions:

Horizontal Equity

Horizontal equity is a principle in taxation that dictates that individuals with similar income and assets should pay the same amount in taxes.

Vertical Equity

A principle in taxation that individuals with a higher ability to pay should contribute more taxes.

Progressivity

Refers to a tax system in which the tax rate increases as the taxable amount increases.

Irving Fisher

An American economist known for his work in the field of economics, including the theory of interest and the equation of exchange.