Question

Canada recently discovered large reserves of shale gas left parenthesis shale gas is natural gas that is trapped in fine minus grainedCanada recently discovered large reserves of shale gas (shale gas is natural gas that is trapped in fine−grained sedimentary rock right parenthesis .sedimentary rock).

As a result, Canada's production possibilities curve would ​____________.

A. shift inward.

B.rotate along either the x​- or y​-axis.

C. remain unchanged.

D. bow​ inward, becoming concave to the origin.

E. shift outward.

If you produce at a point on your PPC​, then you are producing at a point that is​ ____________.

A. attainable and efficient

B. attainable if resource prices fall.

C. attainable but inefficient

D.unattainable

Terms of trade is the​ ____________.

A.time required to produce a good or service that is traded.

B.legal document that trading partners sign.

C.benefit received from trade.

D.exchange rate of goods for goods.

Terms of trade are determined​ ____________.

A.by sellers.

B.on the basis of absolute advantage.

C.by buyers.

D. on the basis of opportunity costs

Answer 1

Canada recently discovered....
E. Shift outward
Increase in factors of production will lead to shift out of the PPF.

If you produce at a point on your PPC...
A. attainable and efficient
Points inside the PPF are inefficient. Points outside the PPF are unattainable. Points on PPC are attainable and efficient.

Terms of trade is the​ _
D.exchange rate of goods for goods
It is the price at which nations exchange goods.

Terms of trade are determined​ ____________.
D. on the basis of opportunity costs
Opportunity costs in both the countries set the lower and upper bounds for terms of trade.