Which of the following statements is true?
A) In the absence of trade, the consumption possibility frontier exceeds the production possibility frontier.
B) The slope of the consumption possibility frontier of country reflects the opportunity cost of producing the goods in that country.
C) The slope of a production possibility frontier reflects terms of trade between the goods traded.
D) If countries specialize and trade according to comparative advantage, then the consumption possibility frontier can exceed the production possibility frontier.
Correct Answer:
Verified
Q30: Refer to the figure PPF and Comparative
Q31: Refer to the figure PPF and Comparative
Q32: Which of the following statements is true?
A)
Q33: Which of the following statements is NOT
Q34: In the absence of trade, the consumption
Q36: Portugal specializes in the production of wine
Q37: Portugal specializes in the production of wine,
Q38: Portugal specializes in the production of wine
Q39: Portugal specializes in the production of wine
Q40: Portugal specializes in the production of wine
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