When a Country Is Operating at Its Full Potential Output

question 93

Multiple Choice

When a country is operating at its full potential output, it is producing at a point:

• A) above and to the right of the production possibility frontier.
• B) on the production possibility frontier.
• C) below and to the left of the production possibility frontier.
• D) There is not enough information to answer this question.

---

Definitions:

Productive Resources

are inputs used in the production of goods and services, such as land, labor, and capital, that contribute to productivity and economic output.

Living Standards

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Birthrates

The number of live births per thousand of population per year, a primary indicator of population growth.

Energy Demand

The total amount of energy required by all users and sectors within an economy or system.