Production Possibilities -The Table Above Shows the Production Possibilities Frontier for the for the Economy

question 353

Multiple Choice

Production possibilities
-The table above shows the production possibilities frontier for the economy of Sauria. If this economy were to produce 3 hundred guns and 12 tons of butter, it

• A) would be utilizing its resources with maximum efficiency.
• B) would be operating beyond its production possibilities frontier.
• C) could utilize resources more efficiently to produce 3 more tons of butter without sacrificing any guns.
• D) would be on its production possibilities frontier.

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Definitions:

Industrially Advanced Countries

Nations characterized by high levels of industrialization, sophisticated technology, and a strong economy.

Developing Countries

Nations with low to middle levels of industrialization and lower standards of living and Human Development Index (HDI) compared to developed countries.

Direct Foreign Investment

Investment made by a company or entity based in one country, into a company or entity based in another country.

State Industries

Industries that are owned, controlled, or heavily regulated by government entities to provide public services or goods.