________ a nation's production possibilities frontier represents ...

[rl]

________ a nation's production possibilities frontier represents economic growth.
 
  A) Moving up along B) An outward shift of
  C) An inward shift of D) Moving down along

Question 2

Critically evaluate the following statement. Only if a country enjoys an absolute advantage in the production of a particular good will that country find it beneficial to trade it with another country.
 
  What will be an ideal response?

[cdmart10]

Answer to Question 1

B

Answer to Question 2

Absolute advantage is not what governs trade. Trade occurs instead because of comparative advantage that one country might have over another in the production of a particular good or service.