Answer to Question #190258 in Macroeconomics for James

Question

QUESTION 1

When both countries shift production toward each of their comparative advantages:

1. Their combined production of both goods increases.
2. Their combined production of both goods decreases.
3. Their combined production of both goods remains unchanged.
4. Total efficiency decreases.
5. Total efficiency remains unchanged.

QUESTION 2

The slope of the production possibilities frontier illustrates:

1. The demand for the products shown.
2. The supply of the products shown.
3. The cost of producing the products shown.
4. Absolute advantage.
5. The opportunity cost of producing one product in terms of an alternative product that could be produced.

QUESTION 3

High-income countries can produce all products:

1. With fewer resources than a low-income country.
2. With a lower opportunity cost.
3. But only at a higher opportunity cost.
4. Needed globally.
5. But can never gain an absolute advantage.

Answer 1

QUESTION 1

When both countries shift production toward each of their comparative advantages:

1. Their combined production of both goods increases.

QUESTION 2

The slope of the production possibilities frontier illustrates:

5. The opportunity cost of producing one product in terms of an alternative product that could be produced.

QUESTION 3

High-income countries can produce all products:

1. With fewer resources than a low-income country.