When the U.S. and its allies imposed economic sanctions against Iraq in 1990, the hope was to
A) force Iraq to operate inside its existing production possibilities curve
B) cause Iraq's production possibilities curve to shift outward to the right
C) force Iraq to produce under conditions of increasing opportunity cost
D) cause Iraq to operate at maximum efficiency in the production of oil

Question

Quizplus · Accepted Answer

The sanctions aimed to limit Iraq's economic resources and capabilities, effectively constraining its ability to produce goods and services, thus forcing it to operate inside its existing production possibilities curve.