Answer:
Indeed.
Explanation:
Lowering the budget will naturally cut down our expenses, which in turn will decrease the trade deficit. A trade deficit occurs when imports exceed exports. In simpler terms, it represents a situation where a country spends more than it generates in revenue.
If a cut in the budget deficit boosts global investors' confidence in Malaysia's economy, more investments will flow into various industries, thereby increasing the country's foreign reserves. This influx can elevate the value of the ringgit and improve exports, leading to a reduction in the trade deficit.
Based on the chart, the marginal cost associated with producing the second pie is 0.50, thus option 2) is the right choice.
Option 1) "1.00" is erroneous as that represents the marginal cost for 1 pie.
Option 3) "0.25" is incorrect since that indicates the marginal cost for 3 pies.
Lastly, option 4) "1.25" is also incorrect, representing the marginal cost for producing 5 pies.
