Microeconomic models can be very useful for individuals, governments, and firms in making decisions because they: a. allow decision makers to determine what is fair. b. allow decision makers to know what will happen. c. allow decision makers to make predictions. d. none of the above.

Suppose that, on the basis of a nation’s production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. now consider the following statement: “through international specialization and trade, a nation can reduce its opportunity cost of obtaining goods and thus ‘move outside its production possibilities curve.’”