A Movement from a Point Inside the Production Possibilities Frontier

question 42

Multiple Choice

A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents

• A) full employment of labour but not capital.
• B) an infinite opportunity cost.
• C) a free lunch.
• D) a tradeoff.
• E) unemployment of labour but not capital.

---

Definitions:

Decreased Perceptual Field

A reduction in the range or scope of sensory awareness and interpretation, often resulting from neurological conditions or sensory impairments.

Proper Authorities

Official organizations or individuals vested with the legal power to enforce laws, regulations, or carry out government functions.

Agitated

A state of increased restlessness, nervousness, or irritability, often resulting from stress or a specific psychiatric condition.

Positive Variance

A term used in accounting and finance indicating that actual revenues are higher than forecasted or budgeted revenues, or expenses are lower than expected.