Multiple Choice
The graph above shows the PPC for a country that can produce oil or televisions.
The straight line is the trade line and CPC if production is at Point A.
Which of the following is a true statement?
A) This country should produce relatively more oil and relatively fewer televisions.
B) This country should produce relatively more televisions and relatively less oil.
C) This country should produce more of both goods.
D) This country is producing the optimal mix of oil and televisions to maximize its income.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Nations that have only a single abundant
Q2: What is the Heckscher-Ohlin theorem? Using the
Q4: Offshoring by domestic firms causes job losses
Q5: The United States has the largest percentage
Q6: Wage inequality has been on the rise
Q7: How is offshoring of services different from
Q8: The straight-line production possibilities curve<br>A)does not show
Q9: After trade opens,the short run impact on
Q10: A production possibilities curve that is a
Q11: Since empirical tests of the HO theory