Final answer:
The situation where firms gain a competitive advantage by acquiring resources at low cost is termed Better expectations of future resource value. Capital deepening is unlikely in a weak economy but may be fostered by increased international trade. Marginal analysis is crucial to economic decisions, with the Production Possibilities Frontier showcasing societal resource allocation trade-offs.
Step-by-step explanation:
The situation in which firms acquire resources at a low cost, laying the foundation for a competitive advantage later, is described by Better expectations of future resource value. This concept suggests that firms with superior foresight into the future value of resources can purchase or secure them at a lower cost before their true potential is widely recognized.
Regarding the events that could lead to capital deepening, a weak economy where businesses are hesitant to invest would typically not lead to capital deepening because it implies a reduction in investment in physical capital, which is essential for capital deepening. In contrast, a rise in international trade can encourage capital deepening if it leads to greater demand for advanced production technology and improved capital investment.
Most economic decisions involve marginal analysis, which assesses the costs and benefits of a little more or a little less of a decision. The Production Possibilities Frontier illustrates these trade-offs and social choices, highlighting the opportunity costs associated with allocating resources between competing uses.