If Ying Can Increase Production of Houses Without Decreasing Production

question 52

Multiple Choice

If Ying can increase production of houses without decreasing production of any other product, then Ying

• A) is producing on his production possibilities frontier.
• B) is producing outside his production possibilities frontier.
• C) is producing inside his production possibilities frontier.
• D) must have constant opportunity costs.
• E) must prefer houses to any other product.

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Definitions:

Mediation

A method of settling disputes outside of court by using the services of a neutral third party, called a mediator. The mediator acts as a communicating agent between the parties and suggests ways in which the parties can resolve their dispute.

International Business Transactions

Economic activities that involve the exchange of goods, services, or information across national borders.

Arbitration Clauses

Provisions in a contract that require disputes to be resolved through arbitration, instead of through court litigation.

Arbitration

A method of resolving disputes outside the courts, where the parties to a dispute refer it to one or more arbitrators who make a binding decision.