Inefficient Use of Resources Is Shown on the Production Possibilities

question 87

Multiple Choice

Inefficient use of resources is shown on the production possibilities curve

• A) by an inward shifting of the curve.
• B) by a point inside the curve.
• C) by a point near the top of the curve.
• D) by a point outside the curve.

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Definitions:

Emissions

The act of releasing substances, especially pollutants, into the atmosphere or environment.

Government

An organized system that establishes and enforces rules and institutions to govern a community, region, or country.

Firms

Business entities that produce goods or provide services to consumers, aiming to maximize profits.

Pigouvian Taxes

Taxes imposed on any market activity that generates negative externalities (costs not reflected in the market price) to correct the market outcome.