FIGURE 1-5 Refer to Figure 1-5

question 71

Multiple Choice

FIGURE 1-5 Refer to Figure 1-5.Suppose the relevant production possibilities boundary is the one labelled B.This boundary implies that

• A)the concept of opportunity cost is not at work in this economy.
• B)the opportunity cost of producing either capital goods or consumer goods does not depend on how much of each good is produced.
• C)consumer goods are preferred to capital goods.
• D)in this society,the resources are not efficiently employed.
• E)capital goods are preferred to consumer goods.

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Definitions:

Diminishing Marginal Returns to Labor

A principle stating that if the amount of a variable resource (such as labor) increases while other factors are fixed, the additional output generated by the additional input will eventually decrease.

Productivity Growth Slowdown

A period characterized by a decrease in the rate at which the productivity of labor increases over time.

Environmental Regulations

Laws and rules enforced by governments to regulate activities that impact the environment, aimed at reducing pollution and preserving natural resources.

Workplace Safety Regulations

Laws and guidelines designed to ensure the physical safety and health of employees within the workplace.