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2. by a downward movement along the produc tion pos s ibilities c urve.
3. by a movement toward the produc tion pos s ibilities c urve.
4. by an upward movement along the produc tion pos s ibilities c urve.
5. by an outward s hift of the produc tion pos s ibilities c urve.
Que stion 6 (1 point)
Marginal opportunity c os t is defined to be
1. the dec lining ability of a c ountry to c orrec t its balanc e of trade defic it.
2. alway s unc hanging.
3. alway s dec reas ing.
4. les s produc tive res ourc es .
5. the amount of one good or s ervic e that mus t be forgone to obtain an additional
unit of another good.
Que stion 7 (1 point)
Given the differenc es in opportunity c os ts within individual c ountries , it mak es s ens e
for c ountries
1. to forc e protec tionis m of the mos t important domes tic indus tries , us ing tariffs
and quotas . 2. to devalue their c urrenc ies at leas t onc e a y ear.
3. to s pec ializ e in ac tivities in whic h opportunity c os ts are highes t and then avoid
trade in order to manage trade defic it...
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This homework help was uploaded on 03/18/2014 for the course ECON 2010 taught by Professor Staff during the Spring '08 term at Utah Valley University.
- Spring '08