The Following Diagrams Show the Production Possibilities Boundaries for Austria

question 24

Multiple Choice

The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes. FIGURE 32-2
-Refer to Figure 32-2.Assume that Austria and Switzerland do not engage in international trade.In that case,

• A)Austria will produce all shoes and no bicycles.
• B)Switzerland will produce all bicycles and no shoes.
• C)each country will consume according to comparative advantage anyway.
• D)the downward-sloping lines illustrate each country's consumption possibilities.
• E)each country will produce according to comparative advantage anyway.

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Definitions:

Basic Needs

Essential requirements for humans to survive and maintain health, typically including food, water, shelter, and clothing.

Voidable

describes a contract or transaction that is valid and enforceable on its face, but may be deemed void by one or more of the parties due to certain conditions.

Disaffirm

The act of rejecting, denying, or voiding a contract or agreement, especially one entered into by a minor or under conditions that render it voidable.

Age Of Majority

The legal age at which an individual is considered legally competent to consent to contracts and manage personal affairs; varies by country, generally 18 or 21 years old.