A Point Lying Inside the Production Possibilities Boundary Is One

question 99

Multiple Choice

A point lying inside the production possibilities boundary is one at which

• A)there is no scarcity.
• B)the opportunity cost of producing more output is negative.
• C)it is not possible to produce more output with existing resources.
• D)the economy has run out of resources.
• E)more output could be produced with existing resources.

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Definitions:

Public Finance

The study of government revenue, expenditure, and adjustment of government budgets and its effect on the economy.

Circular Flow Model

An economic model illustrating the flow of goods, services, and money between households and businesses in an economy.

Federal Government

The national government of a federal country that shares power with regional governments like states or provinces.

Proprietary Income

Income generated from owned properties or businesses, exclusive to the owner or proprietor.