1. Which of the following occurrences expands a production possibilities curve outward? 1. Converting resources from producing one good to another

2. Sustained production of consumer goods

3. Improvements in technology

4. Combinations showing a decreasing opportunity cost

5. an economic recession

2. A country can have a(n) ______ with a trading partner in the production of both goods, but it cannot have a(n) ___________ in producing both goods.

1. Absolute advantage; comparative advantage

2. greater efficiency; absolute advantage

3. comparative advantage, increasing opportunity cost

4. decreasing opportunity cost; absolute advantage

5. increasing opportunity cost; absolute advantage

3. Use the below PPC to answer the following

Use the PPCs below to answer the following question. Dominican Republic Cuba 50 Consumer Goods Consumer Goods 20 25 50 Capital Goods Capital Goods