# ECON8305docx (197).pdf - 166 iChapter i2u2014Choice...

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166. i Chapter i 2 Choice, i Opportunity i Costs, i and i Specialization i Questi23 i It i is i possible i for i a i nation i to i increase i the i production i of i defense i goods i without i sacrificing i the i production i of i nondefense i goods i if i and i only i if *a. i the i nation i is i producing i at i a i point i inside i the i production i possibilities i curve. b. i the i nation i has i a i large i pool i of i fully i employed i labor i and i very i low i wage i rates. c. i the i nation i has i more i natural i resources i available i than i competing i nations. d. i the i nation i is i a i democracy i and i has i a i stable i political i environment. e. i the i central i bank i of i the i nation i does i not i implement i sound i monetary i policy. 167. i Chapter i 2 Choice, i Opportunity i Costs, i and i Specialization i Questi24 i Figure i 2-3 nar003-1.jpg In i Figure i 2-3, i underutilization i of i resources i is i represented i by i point a. i A b. i B c. i C d. i D *e. i E 168. i Chapter i 2 Choice, i Opportunity i Costs, i and i Specialization i Questi25 i Figure i 2-3 nar003-1.jpg In i Figure i 2-3, i full i employment