If an Economy Is Operating Inside Its Production Possibilities Curve

question 22

Multiple Choice

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

• A)can only produce more consumer goods by producing fewer capital goods.
• B)can only produce more capital goods by producing fewer consumer goods.
• C)can produce more of both consumer goods and capital goods by using its resources more efficiently.
• D)must improve its technology to produce more output.

---

Definitions:

Haggis

A traditional Scottish dish made from a mixture of sheep's heart, liver, and lungs, minced with onion, oatmeal, suet, spices, and salt, traditionally encased in the animal's stomach.

Robbie Burns Day

A celebration in honor of Robert Burns, Scotland's national poet, held annually on his birthday, January 25th.

Food Culture

The practices, attitudes, and beliefs surrounding the production, distribution, and consumption of food within a specific group.

Cadbury Schweppes

A multinational confectionery and beverage company, known for its chocolate products and soft drinks.