Suppose a Production Possibilities Frontier (PPF)has Been Plotted on a Graph.If

question 94

Multiple Choice

Suppose a production possibilities frontier (PPF) has been plotted on a graph.If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods,then a point outside the PPF represents:

• A)a smaller quantity of consumer goods than that represented by a point inside the PPF.
• B)an inefficient output combination of the two goods in the economy.
• C)an unattainable output combination of the two goods in the economy.
• D)an output combination of more consumer goods than capital goods.
• E)a smaller quantity of capital goods than that represented by a point inside the PPF.

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Definitions:

Competitive Element

A factor that distinguishes a company in the marketplace, often related to quality, price, or innovation, aiding in achieving a competitive advantage.

Elastic Demand

A situation in which the quantity demanded of a product or service changes significantly in response to a change in price.

Large Number

A value that is significantly higher than what is considered average or normal, often used in statistical analysis.

Marginal Revenue Curve

A graphical representation showing the extra revenue obtained from selling one more unit of a good or service.