The Graph Above Shows the Production Possibilities Curves for Two

question 18

Multiple Choice

The graph above shows the production possibilities curves for two hypothetical nations, Orin and Pohl, which each make two hypothetical products, jaxs and keps. Which of the following statements is correct?

• A) Orin has a comparative advantage in both jaxs and keps
• B) Pohl has a comparative advantage in jaxs
• C) The opportunity cost of making jaxs is lower in Orin than in Pohl
• D) Orin is more efficient than Pohl

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Definitions:

Liberals

Individuals or groups advocating for policies that emphasize individual rights, social equality, and a supportive role for government.

Libertarians

Individuals who advocate for minimal government intervention in the personal and economic lives of citizens, emphasizing individual liberty and free-market principles.

Economic Inequality

The unequal distribution of wealth, income, or resources across different participants in a society, economy, or country.

Democratic Forms

Types of government systems where power is vested in the people, who either rule directly or through elected representatives.