A Production Possibilities Frontier Shows

question 30

Multiple Choice

A production possibilities frontier shows

• A) that if price of one good decreases, the price of the other has to increase.
• B) how money can be allocated among two kinds of goods.
• C) the limits to future growth of a nation.
• D) that it is impossible to produce inefficiently.
• E) the various combinations of output a nation can produce at a certain time, given its available resources and technology.

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Definitions:

Off-price Retailers

Retailers that sell branded goods at significant discounts off the suggested retail price, typically by purchasing overstocked or out-of-season items.

Wholesale Prices

The cost of goods sold in large quantities primarily to retailers, distributors, or other merchants, rather than to end consumers.

Advertising Allowances

Financial incentives provided by manufacturers to retailers or wholesalers to support advertising or promotion of specific products.

Category Specialists

Retailers or businesses that focus on selling products within a specific category, offering a wide assortment within that category to cater to various customer needs.