Figure 2-2 Consider the Production Possibilities Curve for a Country

question 294

Multiple Choice

Figure 2-2 Consider the production possibilities curve for a country that can produce cars,corn (in bushels) ,or a combination of the two.
-Refer to Figure 2-2.If this society is producing at point C,

• A) there is unemployment.
• B) production is efficient.
• C) growth can only be achieved through an advancement in technology.
• D) the opportunity cost of producing one more car is approximately 10 bushels of corn.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Increasing Returns

A situation in economics where an increase in the scale of production leads to a more than proportionate increase in output, often due to efficiencies gained.

Trade Pattern

The general flow of import and export transactions between countries or regions.

Exports

Goods or services sent from one country to be sold or used in another country.