When a country produces on its production possibilities curve, then this country's unemployment is expected to be at one of its lowest rates, however, prices in this country are not expected to be relatively low.

Question 1 options:

True

False

International trade promotes economic growth when it allows any two countries to grow (in their combined production) beyond (above) their pre-trade production possibilities curve (PPC).

Question 7 options:

True

False

For any economy, the "scarcity" problem simply means that the available free resources are "not enough" to produce all goods and services required to satisfy the unlimited human wants.

Question 1 options:

True

False

In a world of only two countries producing only two products using the same amount of resources in each country; which of the following statements is/are expected to be true?

Question 2 options:

If one country has a comparative advantage in producing one of the two products, then we know that the other country has a comparative advantage in producing the other product.

It is possible that one of the two countries enjoy comparative advantages in producing both products.

All of the above statements are true.

None of the above statements is true.

within any economy, when "free trade" is preferred to both "no trade" and "regulated trade" then there are no losers from free trade.

Question 5 options:

True

False