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The Slope of a Linear Production Possibilities Curve with Trade

Question 56

Multiple Choice

The slope of a linear production possibilities curve with trade is given by the


A) opportunity costs of the product in each country.
B) relative price-the number of units of good A that can be obtained for one unit of good B.
C) ratio of productivity of workers in two countries.
D) ratio of the elasticities of the product demand curves.
E) rise over run of a country's average total cost curve.

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