Which of the Following Statements Is Not True Regarding the Production

question 96

Multiple Choice

Which of the following statements is not true regarding the production function and the production possibilities curve?

• A)Both the production function and the production possibilities curve maximize the amount of output attainable.
• B)The production function describes the capacity of a single firm,whereas the production function summarizes the output capacity of the entire economy.
• C)A production function tells us the maximum amount of output attainable from the use of all resources.

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Definitions:

Direct Quote

A quote in foreign exchange markets that specifies the domestic currency price for one unit of a foreign currency.

Political Risk

The risk associated with changes in government policy which may negatively affect domestic and foreign businesses.

Disadvantage

This refers to an unfavorable condition or circumstance that reduces the chances of success or effectiveness.

Hedge

Investment made to reduce the risk of adverse price movements in an asset, often by taking an offsetting position in a related security.