If an Economy Is Represented by a Point Inside Its

question 75

Multiple Choice

If an economy is represented by a point inside its production possibilities curve,

• A) it can produce more of one product even if it does not produce less of another product.
• B) it can produce more of one product only if it produces less of another product.
• C) it cannot produce more of one product unless it stops producing the other product entirely.
• D) it cannot possibly produce more of one product, even if it produces less of another product.

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Definitions:

Minimum-Wage Laws

Legislation that sets the lowest hourly wage that employers can legally pay their workers, intended to protect workers from exploitation.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, in a certain period.

Supplemental Nutrition

Programs or interventions designed to provide additional nutritional support, especially to vulnerable groups such as children, the elderly, or low-income families.

Capital Gains Tax

A tax levied on the profit received from selling a capital asset such as stocks, bonds, or real estate.