The Diagram Below Shows Two Production Possibilities Boundaries for Country

question 99

Multiple Choice

The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1-4
-Refer to Figure 1-4.If Country X were producing at point C,

• A)the opportunity cost of moving to point B is to give up some consumption goods.
• B)the opportunity cost of moving to point A is zero.
• C)the opportunity cost of moving to point A is to give up some capital goods.
• D)this is the maximum output possible from given resources.
• E)it is not possible to move to any point on PPB1 or PPB2 without technological progress.

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Definitions:

GDP

Gross Domestic Product represents the total value, in monetary terms, of all finished goods and services made within a country's boundaries over a defined period.

Unemployment Benefits

Financial payments given to individuals who have lost their jobs, intended to provide a source of income while they search for new employment.

Taxes on Earnings

Levies imposed by a government on individuals' or entities' income from work or investment.

Real GDP

The total value of all goods and services produced within a country adjusted for inflation, representing the economic output.