If an Economy Is Operating Inside Its Production Possibilities Curve

question 63

Multiple Choice

If an economy is operating inside its production possibilities curve for tanks and bread, which of the following best illustrates what is happening in the economy?

• A) Production of bread and tanks can both increase.
• B) All resources are being used efficiently.
• C) Production of bread can increase only by sacrificing the production of tanks.
• D) Scarcity does not exist.

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Definitions:

Environmental Impact Statement

A document prepared to describe the effects for proposed activities on the environment, intended to inform decision-making on such activities.

Business People

Individuals engaged in commercial, industrial, or professional activities.

Hazardous Waste Sites

Locations where hazardous waste is stored, treated, or disposed of, potentially posing risks to human health and the environment.

CERCLA

The Comprehensive Environmental Response, Compensation, and Liability Act, a U.S. law designed to clean up sites contaminated with hazardous substances.