If Previously Unemployed Factors of Production Are Utilized, _____

question 73

Multiple Choice

If previously unemployed factors of production are utilized, _____.

• A) the economy moves along the production possibility frontier
• B) the production possibility frontier shifts outward to the extent of the output that is
• C) the production possibility frontier is not affected
• D) the economy will move from a point below the production possibility frontier to a point on

---

Definitions:

Perfectly Competitive Industry

An industry structure where many firms produce identical products, entry and exit are easy, and no single firm can influence the market price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, with a typical downward slope indicating that demand increases as price decreases.

Producer's Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive.

Marginal Cost Curve

A graph showing the change in total production cost that comes from making or producing one additional unit.