Essay
A small country produces only two goods,CDs and T-shirts.Given its limited resources,this country has the following production possibilities:
(A)Draw the production possibilities curve.
(B)Suppose this country improves its technology for producing CDs,but technology remains the same for the production of T-shirts.What happens to the production possibility curve? How does this change affect the opportunity cost of increasing T-shirt production?
Correct Answer:

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(A)
(B)
The production possibilities cu...View Answer
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Correct Answer:
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The production possibilities cu...
View Answer
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