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1. Joint output of individuals or nations will be maximized when goods are exchanged between parties in accordance with the law of "comparative advantage".
True
False
2. The law of supply states that there is a negative relationship between price and quantity demanded.
3. An increase in consumer income will affect the supply of any given product.
4. The production possibilities frontier assumes that the level of technology varies when applying the model.
5. The "Law of diminishing returns" states that as any activity is extended, it eventually becomes increasingly easier to pursue the activity further.
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