Compared to Their Initial Positions at Points a and B

question 91

Multiple Choice

Compared to their initial positions at points A and B, as a result of complete specialization and trade, the output of the two countries added together in Figure 35.1 would result in an increase in

• A) Both DVD players and motorcycles.
• B) Motorcycles only.
• C) DVD players only.
• D) Neither DVD players nor motorcycles.

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Definitions:

Foregone Opportunities

The benefits or income missed out on when choosing one alternative over another.

Tuition

The fee charged for instruction or education provided by schools, colleges, and universities.

Equality

The condition of having equal status, rights, and chances.

Economy

The system by which goods and services are produced, distributed, and consumed in a society or geographic area.