In autarky, the quantities produced and consumed by a nation will be determined by: a) The point at which the marginal rate of substitution equals the marginal rate of transformation. b) The point at which the community indifference curve is tangent with the production possibilities frontier. c) The point at which welfare is maximized given the existing domestic resources. d) All of the above answers are correct.
In autarky, the quantities produced and consumed by a nation will be determined by: a) The point at which the marginal rate of substitution equals the marginal rate of transformation. b) The point at which the community indifference curve is tangent with the production possibilities frontier. c) The point at which welfare is maximized given the existing domestic resources. d) All of the above answers are correct.
Chapter13: General Equilibrium And Welfare
Section: Chapter Questions
Problem 13.6P
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Question
In autarky, the quantities produced and consumed by a nation will be
determined by:
a) The point at which the marginal rate of substitution equals the marginal
rate of transformation.
b) The point at which the community indifference curve is tangent with the
c) The point at which welfare is maximized given the existing domestic
resources.
d) All of the above answers are correct.
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