When an Economy Is Operating on Its Production Possibilities Curve

question 27

Multiple Choice

When an economy is operating on its production possibilities curve, more production of one good means less production of another because

• A)wants are unlimited.
• B)resources are limited.
• C)some resources are not employed.
• D)wants are limited.
• E)resources are not perfectly adaptable to alternative uses.

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Definitions:

Design Defect

A defect that is found in all products of a particular design and renders them dangerous.

Toy Manufacturer

A company or individual engaged in the production of toys for children.

Negligence-Based Product Liability

A legal principle holding manufacturers or sellers responsible for harming consumers due to careless design, manufacture, or warning practices.

Compensatory Damages

Monetary compensation awarded to a plaintiff to indemnify actual losses, expenses, or harm suffered due to the defendant's wrongful conduct.