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a. production occurs where the production possibility curve is tangent to a line with the slope equal to the ratio of the world relative prices. b. production occurs where an indifference curve is tangent to the production

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Jul 15, 2015 · A graph of the growth of production capacity is shown as an upward shift of the national production possibilities curve. Or it may be shown as a rightward shift of the long-run aggregate supply curve.

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A new curve, the consumption possibility curve, is needed to show the consumption options. Trade increases the amount of goods that are available for each country to consume. In this example, where only two countries exist, it is not certain that the residents of Country D will be willing...

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The inflation premium is closest to: A. 2.5%. B. 4.0%. C. 9.0%. 4. Two bonds, a U.S. Treasury bond has a yield to maturity of 5 percent, while a bond issued by an industrial corporation, has a yield to maturity of 7 percent. The two bonds are otherwise identical i.e. they have the same maturity, and are option-free. See full list on

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The production functionThe mapping from inputs to an output or outputs. is the mapping from inputs to an output or outputs. For the most part we will focus on two inputs in this section, although the analyses with more than inputs is "straightforward."

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May 28, 2018 · Full file at 24. Suppose a consumer has a daily income of $48 and purchases just two goods, A and B. The price of A is $8 and the price of B is $6.

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