Use the Following to Answer Question(s): Production Possibilities in Alphaland

question 126

Multiple Choice

Use the following to answer question(s) : Production Possibilities in Alphaland and Omegaland

-(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is false?

• A) The law of increasing costs means that, as an economy moves downward to the right along its production possibilities curve, the cost of additional units rises.
• B) An economy with a comparative advantage in a particular good will tend to specialize in the production of that good.
• C) An economy's production will move off its production possibilities curve because of trade.
• D) Specialization and trade can benefit both countries at the same time.

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Definitions:

Trans-Tasman Trade

Describes the trade relationship and economic exchanges between Australia and New Zealand, named after the Tasman Sea that separates the two countries.

Economic Agenda

A set of priorities and plans designed by a government or organization to guide economic policies and actions.

Bilateral Relationship

A relationship between two countries or entities characterized by mutual agreements, cooperation, or exchange of goods/services.

Ethnic Turmoil

Conflict or unrest within a nation or community, typically arising from racial or ethnic differences.