2.
An increase in resources will shift the PPF ________________; a decrease in resources will shift the PPF _______________. Point A is below the PPF, and point B is on the PPF. At point A, there are _______________ resources.
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3.
The opportunity cost for Jace of producing goods X and Y is 1X = 2Y and 1Y = 2X. The opportunity cost for Ethan of producing goods X and Y is: 1X = 5Y and 1Y = 1/5X. ________ has a comparative advantage in producing X, and ________ has a comparative advantage in producing Y. The opportunity cost for Tamara of producing goods X is 1X = 12Y, which means the opportunity cost for her of producing 1Y is ________ X.
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3. Specialization and trade permits individuals to consume ______.
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