The Production Possibilities Frontier Demonstrates the Basic Economic Principle That

question 48

Multiple Choice

The production possibilities frontier demonstrates the basic economic principle that:

• A) economies are always efficient.
• B) assuming full employment, supply will always determine demand.
• C) assuming full employment, an economy is efficient only when the production of capital goods in a particular year is greater than the production of consumption goods in that year.
• D) assuming full employment, to produce more of any one thing, the economy must produce less of at least one other good.

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system responsible for mobilizing the body's fight-or-flight response and regulating involuntary bodily functions.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for the body's rest and digest response, opposite of the sympathetic nervous system.

Polygraph Test

A lie detector test that measures physiological responses, such as blood pressure, pulse, and respiration, to determine the veracity of someone's statements.

Modified Version

An altered or adapted form of something, often designed to improve functionality or to tailor it to specific needs.