A Point Outside a Production Possibilities Curve Indicates

question 264

Multiple Choice

A point outside a production possibilities curve indicates

• A) that resources are not being used efficiently.
• B) an output combination that society cannot attain given its current level of resources and technology.
• C) that resources are being used very efficiently.
• D) that both goods are characterized by increasing costs.

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Definitions:

Oceanic Crust

The part of Earth's lithosphere that underlies the ocean basins, composed mostly of basaltic rock and thinner than the continental crust.

Island Arcs

Curved chains of volcanic islands that form along subduction zones at the edges of tectonic plates in the ocean.

Continental Rifts

Areas where the Earth's crust is stretching and splitting apart, leading to the formation of new oceanic crust.

Felsic

Refers to igneous rocks that are rich in silica and light in color, including granite and rhyolite.