Suppose That Scoobania, Which Has Full Employment, Can Obtain 1

question 209

Multiple Choice

Suppose that Scoobania, which has full employment, can obtain 1 unit of capital goods by sacrificing 2 units of consumer goods domestically but can obtain 1 unit of capital goods from another country by trading 1 unit of consumer goods for it. This reality illustrates

• A) a rightward (outward) shift of the production possibilities curve.
• B) increasing opportunity costs.
• C) achieving points beyond the production possibilities curve through international specialization and trade.
• D) productive efficiency.

---

Definitions:

Jefferson

Thomas Jefferson, an American Founding Father, the principal author of the Declaration of Independence (1776), and the third President of the United States (1801–1809), known for his contributions to the principles of democracy.

European Conflicts

Historical disputes and wars that occurred within Europe, driven by factors like nationalism, territorial disputes, and political ideologies.

Neutral Trading

The practice of trading without favoring any side in a conflict, typically during wartime, to avoid military retaliation.

Caribbean Trade

The exchange of goods, services, and cultural influences among Caribbean countries and between the Caribbean and the rest of the world.