-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are

question 20

Multiple Choice

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Measuring food on the horizontal axis,the joint production possibility frontier

• A) will have a slope of -3/4 over the entire frontier.
• B) will have a slope of -2 when less than 20 units of food are produced.
• C) will have a slope of -1 when less than 20 units of food are produced.
• D) will have a slope of -1/2 when less than 20 units of food are produced.

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Definitions:

Supply Curve

The Supply Curve is a graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing and able to provide, typically upward sloping.

Change In Supply

A shift in the quantity of a good that producers are willing and able to sell at various prices, due to factors other than the price of the good itself.

Change In Quantity Supplied

The difference in the amount of a product that producers are willing and able to sell due to a change in price.

Law Of Supply

The claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises.