A nation maximizes satisfaction by reaching the highest possible indifference curve， and in the absence of trade will produce where its production possibilities schedule is tangent to an indifference curve.（ ）
举一反三
- In the absence of trade, a nation is in equilibrium where a community indifference curve:
- The best no-trade point for a country on an increasing cost production possibilities curve is where: ( ) A: the curve touches the vertical axis. B: the curve touches the horizontal axis. C: the origin. D: the curve touches the highest indifference curve.
- According to the principle of（ ） A: Resources are directed to their highest productivity B: The output of the nation’s trading partner declines C: The nation can produce outside of its production possibilities curve D: The problem of unemployment is eliminated
- A rise in the price of imports or a fall in the price of exports will A: improve the terms of trade B: worsen the terms of trade C: Expand the production possibilities curve D: Contract the production possibilities curve
- If an economy is represented by a point inside its production possibilities curve: