A country's consumption possibilities frontier can be outside its production possibilities frontier if _____. The slope of the consumption function is A less than the slope of the 45° line but not equal to zero B greater than the slope of the 45° line C equal to the slope of the 45° line D equal to zero 3. Aggregate expenditure for the country is a. A. I think the other answers here are a bit technical, so let's simplify it a little and explain why exports might exceed 100% of GDP. overestimate the value of production taking place in the economy. A country’s consumption possibilities are the same as its production possibilities. 6.0 trillion c. 7.0 trillion d. $8.5 trillion 8. $5.5 trillion b. The standard of living or the consumption standard of the people depends, in the ultimate analysis, on the volume and variety of production. Saving rather than dis-saving occurs at any level of disposable income at which A the consumption … During 2008, a country has consumption expenditures of $3.0 trillion (unit same for the rest), investment expenditures of $1.5, government expenditures of $1.5, exports of $1.0, and imports of $1.5. When the world price of an internationally traded product is greater than a country’s domestic equilibrium price. Question: When A Country's Imports Is Greater Than Its Exports, The Country Is Experiencing A Trade Deficit Trade Surplus Trade Balance Trade Residual A Trade Surplus Is Expressed As Exports > Imports Exports < Imports Exports = Imports (Exports - Imports)m A Country Is Said To Have When It Can Produce A Product At A Smaller Opportunity Cost. c. the country's opportunity cost of that good is high relative to other countries' opportunity costs of that same good. The same as its production possibilities frontier only if there is no international trade B. Its consumption possibilities equal its production possibilities. By year 2050, more than half of the world’s population is expected to rely in food sourced from other countries. Richness or poverty of a country is dependent upon the amount of … When a country has a comparative advantage in producing a certain good, a. the country should import that good. In fact, performance of an economy is judged by the level of its production. 2. B. Allocative Effic According to a recent report by the EIA , China has increased its coal consumption by more than 2.3 billion tons over the last decade, accounting for a … b. the country should produce just enough of that good for its own consumption. The GDP is the total value of all intermediate goods produced in the country. If a country is completely self-reliant in producing goods for its own consumption needs, then It consumes more than it can with trade. It promotes specialization. The GDP can be estimated by adding the value added by all the different sectors of the economy. As a result of trade, even if it still bakes no bread, it can obtain 100 pairs of shoes, which is an increase of 50 pairs. d. None of the above is correct. . Without trade, if Country C prefers not to bake any bread, and instead employs all of its residents in shoemaking, then it would be able to produce at most 50 pairs of shoes. A comprehensive study conducted by Marianela Fader of Potsdam Institute for Climate Impact Research shows that population pressures will push many nations to make maximizing their domestic food production capacity a top priority. It achieves a higher standard of living by exporting. It achieves a higher standard of living by exporting comparative advantage in producing a certain good, the..., performance of an economy is judged by the level of its production a certain good a.... 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