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.

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Definitions:

Price Of Coffee

The market value or cost at which coffee is bought and sold, influenced by factors including production costs, demand, and supply conditions.

Income Decreased

A decrease in income refers to a reduction in the amount of money earned or received by individuals or entities over a period.

Political Science

The study of governments, public policies, political processes, political behavior, and ideas about governance and power.

Economics

The study within social science focused on examining how various entities including individuals, governments, businesses, and countries decide on the best way to distribute finite resources to meet their boundless needs.