Refer to the Graph Below

question 50

Multiple Choice

Refer to the graph below. As you move from point A to point B:

• A) production efficiency is increased because we have more of good X.
• B) production efficiency is decreased because we have less of good Y.
• C) production efficiency is decreased because we are no longer on the production possibility curve.
• D) the change in efficiency is unclear.

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Definitions:

Arbitration

A method of dispute resolution where an impartial third party makes a decision that is binding on all involved parties.

Mediation

Mediation is a conflict resolution process where a neutral third party (the mediator) facilitates dialogue between disputing parties to help them reach a mutually acceptable agreement.

Resistance Points

The positions beyond which a negotiator is unwilling or unable to go in a negotiation; the limit of compromise.

Mediator

A neutral third party who assists in negotiating an agreement between disputing parties.