Most t-shirts bought by Americans are made in Asia. U.S. consumers of t-shirts buy these t-shirts because
A) they pay a higher price for t-shirts made in Asia than they would for similar shirts made in the United States.
B) they pay a lower price for t-shirts made in Asia than they would for similar shirts made in the United States.
C) they must buy some goods or services produced in Asia.
D) by so doing they are helping preserve U.S. jobs producing t-shirts.
E) they know that the United States has a comparative advantage in wearing t-shirts.
Question 2
The production possibilities frontier is the boundary between those combination of goods and services that can be
A) produced and those that can be consumed.
B) consumed domestically and those that can be consumed by foreigners.
C) produced and those that cannot be produced.
D) consumed and those that cannot be produced.
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