The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 101

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.The production possibilities boundaries are drawn concave to the origin.What does this shape of the PPB demonstrate?

• A)the decreasing opportunity cost of producing more of either good
• B)the scarcity of resources in the economy
• C)the constant opportunity cost of producing more of either good
• D)the unfair distribution of resources in the economy
• E)the increasing opportunity cost of producing more of either good

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Definitions:

Barbary Wars

A series of conflicts between the United States and the Barbary States in North Africa in the early 19th century, aiming to stop pirate attacks on American shipping.

Causes

The reasons or motivations behind certain actions, events, or phenomena, explaining why something happens or the factors leading to a particular outcome.

Consequences

Consequences are outcomes or effects that result from a particular action or set of conditions, often implying a focus on the results of actions and their impact on future events or situations.

Monroe Doctrine

A United States policy that opposed European colonialism in the Americas, stating that any intervention by external powers in the politics of the Americas would be seen as an act of aggression.