Asked by Emily Jackson on May 05, 2024
Verified
The slopes of the production possibilities curves for two nations reflect the
A) relative prices of the resources in the two nations.
B) amounts of imports and exports of the two nations.
C) average income levels in the two nations.
D) opportunity costs of production in the two nations.
Production Possibilities Curves
A graphical representation showing the maximum quantity of goods and services that can be produced within an economy, given fixed resources and technology, when those resources are fully and efficiently utilized.
Opportunity Costs
The cost of forgoing the next best alternative when making a decision or choice.
- Apprehend the essentials of comparative advantage and its impact on the exchange of goods and services between countries and individuals.
Verified Answer
CG
Camila GonçalvesMay 06, 2024
Final Answer :
D
Explanation :
The slope of the production possibilities curve reflects the opportunity cost of producing one good over another within a nation. It shows how much of one good must be given up to produce more of another good, indicating the trade-offs and opportunity costs involved in production decisions.
Learning Objectives
- Apprehend the essentials of comparative advantage and its impact on the exchange of goods and services between countries and individuals.
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