If the Nation's Tastes for Its Import Commodity Increases

question 7

Multiple Choice

If the nation's tastes for its import commodity increases:

• A)the nation's offer curve rotates toward the axis measuring its import commodity
• B)the partner's offer curve rotates toward the axis measuring its import commodity
• C)the partner's offer curve rotates toward the axis measuring its export commodity
• D)the nation's offer curve rotates toward the axis measuring its export commodity

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Definitions:

Pareto Optimal Allocation

A condition of resource distribution in which no one person can be made better off without causing detriment to at least another person.

Endowed

In economics, it refers to the initial allocation of income, wealth, or goods to an individual or an entity at the start of an economic analysis or experiment.

Units

Basic quantities or measurements used to express variables, stock, or outputs in any kind of scientific, economic, or engineering calculations.

Edgeworth Box

A diagram used in economics to show the distribution of resources between two individuals, illustrating how trade can lead to an efficient allocation.