Dan and Ann Live in the Same Community and Both

question 43

Multiple Choice

Dan and Ann live in the same community and both can participate in two activities,producing and stealing.
-Refer to Situation 37-2.Ann spends 8 hours of each day producing and 1 hour of each day stealing.It is probably the case for her that

• A) at some point the MB/MC ratio for producing fell below the MB/MC ratio for stealing.
• B) her MB/MC ratio for producing was always greater than her MB/MC ratio for stealing.
• C) her MB/MC ratio for producing never changed,no matter how much or how little she produced.
• D) her MB/MC ratio for stealing never changed,no matter how much or how little she stole.
• E) There is not enough information to answer the question.

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Definitions:

Economic Stability

A state where an economy experiences steady growth, low inflation, and low unemployment rates over time.

Catching-up Growth

Economic strategy aimed at enabling developing countries to achieve rapid economic growth and reach the standards of more developed countries.

Brazil, Russia, India, China

Collectively known as BRIC, these countries were identified as fast-growing developing economies with significant influence on regional and global affairs.

Long-reaching Effects

Impacts or consequences of an event, decision, or policy that extend over a long period of time or into future generations.