Before the opening of trade, a nation produces (and consumes) at the point where a. its relative price line is not tangent to it's IC or PPF b. its relative price line is only tangent to its PPF c. its realtive price line is only tangent to its IC d. its realtive prive line is tangent to both its IC and PPF
Before the opening of trade, a nation produces (and consumes) at the point where a. its relative price line is not tangent to it's IC or PPF b. its relative price line is only tangent to its PPF c. its realtive price line is only tangent to its IC d. its realtive prive line is tangent to both its IC and PPF
Chapter2: Production Possibilities Frontier Framework
Section: Chapter Questions
Problem 10QP
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Before the opening of trade, a nation produces (and consumes) at the point where
a. its relative price line is not tangent to it's IC or PPF
b. its relative price line is only tangent to its PPF
c. its realtive price line is only tangent to its IC
d. its realtive prive line is tangent to both its IC and PPF
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