The Production Possibilities Curve Shows Various Combinations of Two Products

question 142

True/False

The production possibilities curve shows various combinations of two products which an economy can produce when achieving full employment and productive efficiency.

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Definitions:

Ramifications

A consequence of an action or decision, often complex or unwelcome.

Competitive Price-Taker Model

A market situation where individual firms have no control over the price of a product, typically because of perfect competition.

Competition

The rivalry among businesses to attract customers, striving to achieve such goals as higher sales, market share, and innovation.

Price

The amount of money required to purchase a good or service.