Between the U

question 43

Multiple Choice

Between the U.S. and Nepal, Nepal invests less in new factories and equipment. This will likely cause:

• A) Nepal's production possibilities curve to shift outward faster than the U.S.'s.
• B) The U.S.'s production possibilities curve to shift inward faster than Nepal's.
• C) The U.S.'s production possibilities curve to shift outward faster than Nepal's.
• D) Nepal's production possibilities curve to shift inward faster than the U.S's.

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Definitions:

Independent Firms

Businesses that operate autonomously, not owned by or affiliated with larger corporations, often characterized by unique cultures and personalized services.

BRIC Countries

An acronym referring to the economies of Brazil, Russia, India, and China, which are distinguished by their fast growth and large potential markets.

Tariffs

Taxes imposed on imported goods, often used by governments to control trade flows, protect domestic industries, or generate revenue.

Quotas

Fixed limits or targets, often in a business or policy context, dictating the amount of goods or activities allowed.