Question $3(1$ point$)$

The production possibilities curve illustrates the basic principle that

if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.

an economy's capacity to produce increases in proportion to its population size. the production of more of any one good will in time require smaller and smaller. sacrifices of other goods.

an economy will automatically seek that level of output at which all of its resources are employed.

Question $4(1$ point$)$

If the exchange rate changes from $$1=2$ curos to $$1=3$ euros:

the dollar has neither appreciated nor depreciated, but the euro has appreciated in value.

U$.$S$.$ exports to Europe will increase.

the dollar has depreciated in value.

the dollar has appreciated in value.