The Figure Above Illustrates That If This Country Wishes to Have

question 108

Multiple Choice

The figure above illustrates that if this country wishes to have F? - F? additional food by moving from point A to point B, it will

• A) have to find additional workers, because the country already is operating on its production possibilities frontier.
• B) be unable to do so until additional technological progress is made.
• C) have to sacrifice C? - C? clothing in order to free the resources necessary to produce the additional food.
• D) require that all the unemployed resources in the country be put to work.

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Definitions:

Merchandise Trade Deficit

The situation that occurs when a country imports more goods than it exports, leading to a negative balance of trade.

Merchandise Trade

The act of buying, selling, or exchanging goods and commodities across domestic or international borders.

Merchandise Trade Deficit

A situation where a country's imports of goods exceed its exports of goods, leading to a negative balance in trade for merchandise.

Overall Trade Deficit

The scenario where a country's total imports exceed its total exports, indicating a negative balance of trade.