Using the Production Possibilities Curve, Which of the Following Illustrates

question 105

Multiple Choice

Using the production possibilities curve, which of the following illustrates an inefficient use of resources?

• A) a movement off the curve in a southwest direction
• B) a movement to the southeast along the curve
• C) a movement to the northeast along the curve
• D) a movement off the curve in a northeast direction

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, used in inventory valuation and other financial measurements.