Suppose That an Economy Is Producing on Its Production Possibilities

question 129

Multiple Choice

Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good.This economy

• A)should not change its production, because it cannot improve its allocation by shifting resources.
• B)can improve its allocation by lowering the unemployment rate.
• C)can improve its allocation by producing more of one good and less of the other.
• D)can improve its allocation by producing more of both goods.

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Definitions:

Item

A distinct piece or unit of data, or an object in programming and inventory management.

Element's Position

The specific location or index of an item within a data structure, such as an array or list.

Array Name

An array name in programming serves as a reference to the location of the first element in the array, which can be used to access other elements through indexing.

First Element

The initial item or component in an array, list, or other data structure, often located at index 0 in zero-based indexing systems.