Refer to the Diagram Below in Which Line AB Is

question 107

Multiple Choice

Refer to the diagram below in which line AB is Canadian production possibility curve and AC is its trading possibilities curve.The international exchange ratio between beef and cheese (terms of trade) :

• A) is the absolute value of slope of line AB.
• B) is the absolute value of slope of line AC.
• C) could lie anywhere between the absolute value of the slopes of lines AB and AC.
• D) cannot be determined on the basis of this information.

---

Definitions:

Party

An individual or group involved in a contract, agreement, or legal dispute.

State

A politically organized body of people under a single government.

Court

A governmental institution with the authority to adjudicate legal disputes between parties and administer justice in civil, criminal, and administrative matters.

Appeal

The process by which a party to a legal case seeks a formal change to an official decision made by a lower court by taking it to a higher court.