A Point Lying Inside the Production Possibilities Boundary Is One

question 29

Multiple Choice

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

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

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Definitions:

Expectancy Effect

The impact that a person's expectations can have on the outcome of a situation or experiment, often related to the placebo effect.

Misperception

An incorrect understanding or interpretation of information, events, or situations.

Rods

Visual receptors that respond to dim light.

Cones

Visual receptors involved in color vision.