14. Suppose that, based on a nations production possibilities curve, an economy must sacrifice 10,000 pizzas domestically
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14. Suppose that, based on a nation’s production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the one additional industrial robot it desires, but that it can get the robot from another country in exchange for 9000 pizzas. Relate this information to the following statement:
“Through international specialization and trade, a nation can reduce its opportunity cost of obtaining goods and thus ‘move outside its production possibilities curve.’ ”
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Related Book For
Microeconomics : Microeconomics: Principles, Problems, And Policies
ISBN: 9781631577277
1st Edition
Authors: McConnell / Stanley L. Brue / Thomas P. Barbiero
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