On a Production Possibilities Frontier (PPF)that Shows the Trade-Off Between

question 89

Multiple Choice

On a production possibilities frontier (PPF) that shows the trade-off between consumer goods and capital goods given a fixed amount of labor,unemployment is illustrated by

• A) movement from a point within the frontier to a point on the frontier.
• B) a point outside the frontier.
• C) a point within the frontier.
• D) movement from a point on the frontier to another point on the frontier.
• E) a point on the frontier.

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Definitions:

Legal Rules

These are principles or directives enacted by a governing body that regulate behavior and are enforceable by the imposition of penalties for violations.

Commission

A fee paid to an agent or employee for transacting a sale, calculated as a percentage of the sale price.

Quota

A predetermined limit on the amount of goods that can be imported or produced within a set period.

Mentally Incapacitated

A condition in which a person is unable to make rational decisions or manage their own affairs due to mental deficits or illness.