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Unformatted text preview: E. Opportunity Cost Application: International Trade 1. Questions to Answer a. If workers in the United States are the most productive in the world, why do we consume so many imported goods? b. If trade can make everyone better off, why is there so much opposition to it? 2. Tool: Production Possibilities Frontier (PPF) a. Efficiency b. Numerical Slope = Opportunity Cost c. Optimal Point? d. Economic growth III. NEXT TIME A. Finish Chapter 2: The Production Possibility Model...
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- Fall '07
- Opportunity Cost