The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 49

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.Suppose Country X is currently producing at point E.Country X could achieve production at point D if

• A)the given resources were fully employed.
• B)the given resources were more efficiently employed.
• C)sufficient improvements in technology occurred in either the capital goods industry or the consumer goods industries.
• D)firms reduced output of capital goods.
• E)the prices of capital goods and consumption goods fell.

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Definitions:

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country, used to identify those living in poverty.

Welfare

Welfare refers to government programs designed to support the well-being of its citizens, especially those in financial need.

Poverty Line

A defined level of income that is considered the minimum necessary to maintain a standard of living.

Losing Ground

A phrase indicating that a person, organization, or entity is falling behind in competition or losing advantage.