If an Economy Is Operating on Its Production Possibilities Curve

question 218

Multiple Choice

If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that

• A) it is impossible to produce more consumer goods.
• B) resources cannot be reallocated between the two goods.
• C) it is impossible to produce more capital goods.
• D) more consumer goods can only be produced at the cost of fewer capital goods.

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Definitions:

Profit Center

A segment or unit within an organization that is responsible for generating its own revenue and tracking its own costs.

Company Personnel Department

The segment of a business organization that handles hiring, training, employee relations, and benefits administration.

Cost Center

A unit within an organization that does not directly add to profit but still incurs costs, such as a department or project, which needs to be monitored for internal efficiency.

Generates Revenues

The process of bringing in income from business activities, such as sales of goods or services.