-Refer to the Production Possibilities Frontier in the Figure Above

question 442

Multiple Choice

-Refer to the production possibilities frontier in the figure above. Suppose a country is producing at point a. A movement to point ________ means that the country ________.

• A) d; must give up 20 million capital goods
• B) e; is not operating efficiently
• C) d; gives up 10 million consumer goods
• D) b; is producing at an inefficient point

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Definitions:

Majority-Rule

A decision-making process that follows the principle that the opinions or preferences of more than half of the members of a group have the authority to make decisions binding on the whole group.

Median Voter

A theoretical concept in political science and economics suggesting that the outcome of a majority rule voting process will reflect the preferences of the median voter when preferences are single-peaked.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Fairness

Fairness relates to impartial and just treatment or behavior without favoritism or discrimination.