The Production Possibilities Curve of a Country Will Be a Straight

question 119

Multiple Choice

The production possibilities curve of a country will be a straight line if _____.

• A)the production of each commodity is subject to economies of scale
• B)the country completely specializes in the production of the good with the highest opportunity cost
• C)the country has an absolute advantage in the production of each commodity
• D)the resources in the country are equally adaptable to the production of each commodity
• E)the country completely specializes in the production of the good with the lowest opportunity cost

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Definitions:

Terms

The conditions and stipulations outlined in an agreement or contract, specifying the obligations, rights, and responsibilities of each party involved.

Cost

Refers to the amount of money incurred to produce or purchase goods or services.

Defective Motor

A motor that fails to operate within its specified performance criteria due to faults in design, material, or workmanship.

Discount Period

The time frame during which a payment made early is eligible for a discount according to the terms of the sales agreement.