If You Move from a Point on the Production Possibilities

question 21

Multiple Choice

If you move from a point on the production possibilities curve to a point inside the production possibilities curve,it follows that

• A) efficiency is increased because more of each good is produced.
• B) efficiency is increased because more of one good is produced.
• C) efficiency is increased,even if less of each good is produced.
• D) efficiency is reduced.
• E) efficiency remains same.

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Definitions:

Long-Term Loans

Financial obligations that are due for repayment in a period extending beyond one year.