A country cannot produce a mix of products with a higher value than where
A) the isovalue line is tangent to the production possibility frontier.
B) the isovalue line intersects the production possibility frontier.
C) the isovalue line is above the production possibility frontier.
D) the isovalue line is below the production possibility frontier.
E) the isovalue line is tangent with the indifference curve.
Question 2
All of the following are symptoms of definite and indefinite macroeconomic imbalances EXCEPT
A) large budget deficits.
B) an overvalued currency.
C) a current account deficit.
D) the discovery of emerging markets by financial investors who want to diversify their portfolios.
E) inflationary pressures.
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