All Output Combinations That Lie Outside a Production Possibilities Curve

question 74

True/False

All output combinations that lie outside a production possibilities curve are attainable with available resources and technology.

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Definitions:

Negotiate Costlessly

The ability to come to mutual agreement without incurring any transaction costs or facing obstacles in the negotiation process.

Coase Theorem

Principle that when parties can bargain without cost and to their mutual advantage, the resulting outcome will be efficient regardless of how property rights are specified.

Externalities

Costs or benefits that affect parties who did not choose to incur those costs or benefits, often leading to market failures.

Polluting

The act of contaminating the environment with pollutants, such as chemicals, noise, or heat, that can harm organisms and the ecosystem.