-Point C on the Production Possibilities Frontier in the Above

question 217

Multiple Choice

-Point C on the production possibilities frontier in the above diagram illustrates

• A) a combination of goods and services that cannot be produced efficiently
• B) all goods and services that are desired but cannot be produced due to scarce resources.
• C) a point that achieves production efficiency.
• D) a production point that has underutilization of resources

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Definitions:

Money

Anything that is generally accepted in exchange for goods and services.

Capital

Assets used for the production of goods and services, including machinery, buildings, and equipment.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.