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:

Simple Event

An event that consists of a single outcome in the sample space of a probability experiment.

Conditional Probability

The probability of an event occurring given that another event has already occurred.

Independent Events

Two or more events in which the occurrence of one event does not affect the probability of the other events.

Independent Events

Two or more events where the occurrence of one event does not affect the probability of the other events happening.