If the Production Possibilities Curve Were a Straight Downsloping Line

question 178

Multiple Choice

If the production possibilities curve were a straight downsloping line, this would suggest that:

• A)resources are perfectly substitutable between the production of these two goods.
• B)it is possible to produce more of both products.
• C)both products are equally capable of satisfying consumer wants.
• D)the two products have identical prices.

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Definitions:

Mental Shortcuts

Cognitive strategies or heuristics that the mind uses to make decisions or judgments quickly.

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how well something matches with stereotypes or prototypes in one's mind.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding, across the lifespan, influenced by genetics and environmental factors.

Language Use

The manner in which words and phrases are employed to communicate ideas or feelings.