Author Question: The slope of a country's production possibility frontier with cloth measured on the horizontal and ... (Read 40 times)

olgavictoria · **on:** Jun 30, 2018

The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the Ricardian model is equal to ________ and it ________ as more cloth is produced.

A) -MPLF/MPLC; is constant
B) -MPLF/MPLC; becomes steeper
C) -MPLF/MPLC; becomes flatter
D) -MPLC/MPLF; becomes steeper
E) -MPLC/MPLF; is constant

Question 2

A closed economy

A) can save either by building up its capital stock or by acquiring foreign wealth.
B) can save only by building up its capital stock.
C) can save only by acquiring foreign wealth.
D) cannot save either by building up its capital stock or by acquiring foreign wealth.
E) can save by avoiding excessive imports.