A Country Operating Inside of Its Production Possibilities Frontier (PPF)

question 207

Multiple Choice

A country operating inside of its production possibilities frontier (PPF) is operating

• A) efficiently.
• B) inefficiently and at an unattainable level.
• C) inefficiently but in an area that can be attained.
• D) in the unattainable region.

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Definitions:

Production Techniques

The methods or processes used in the creation or manufacture of goods and services.

Costs

The expense required for something; the money spent on or needed for a project, product, or service.

Profit-Seeking Decision Maker

An individual or entity focused on making decisions that are expected to result in the highest possible profit.

Entrepreneur

An individual who organizes and operates a business venture, taking on greater than normal financial risks in order to do so.