If > Then

question 10

Multiple Choice

If > then

• A) the firm can profit by producing more of good b.
• B) the consumer can benefit by consuming more of good a.
• C) the consumer can benefit by consuming more of good b.
• D) the firm can profit by producing more of good a.
• E) the firm can profit by producing more of goods a and b.

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Definitions:

Employment

The condition in which an individual who is capable of working is engaged in a paid job.

Small Country Assumption

An economic model assumption that a country's market size is small enough that its actions do not affect world prices or incomes.

International Trade

The exchange of goods and services between countries, which can involve both importing and exporting.

Imported Good

A product or service that is brought into one country from another for the purpose of being sold or used, reflecting trade relationships and economic dependencies between nations.