The Production Possibilities Curve Demonstrates the Basic Economic Principle That

question 173

Multiple Choice

The production possibilities curve demonstrates the basic economic principle that:

• A) market-based economies are more efficient.
• B) supply will determine demand in the economy.
• C) the production of more capital goods this year will cause the economy to produce less consumption goods next year.
• D) to produce more of any one thing, assuming full employment, the economy must produce less of something else.
• E) to produce more consumption goods this year requires the production of more capital goods this year.

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Definitions:

Middle Ages

The period in European history from the fall of the Roman Empire in the 5th century to the beginning of the Renaissance in the 14th century.

Banquets

Large formal meals for many people, often held to celebrate or mark significant events or occasions.

Belching

The act of expelling gas noisily from the stomach through the mouth, often as a natural bodily response.

Goffman

Refers to Erving Goffman, a sociologist known for his studies on symbolic interactionism and the social construction of self.