A Point on a Nation's Production Possibilities Curve Represents

question 129

Multiple Choice

A point on a nation's production possibilities curve represents

• A)An undesirable combination of goods and services.
• B)Combinations of production that are unattainable,given current technology and resources.
• C)Levels of production that will cause both unemployment and inflation.
• D)The full employment of resources to achieve a particular combination of goods and services.

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Definitions:

Market Price

The price at which a good or service is bought and sold in a marketplace, determined by the forces of supply and demand.

Perfect Competitors

Firms operating in a market where there are many sellers and buyers, products are homogenous, and there is free entry and exit from the market.

Short Run

A period in economics during which at least one input (like factory size) is fixed and cannot be changed, contrasting with the long run where all inputs can be varied.

Industry

is the aggregate of manufacturing or technically productive enterprises in a particular field, characterized by the goods or services they produce.