Which of the Following Most Accurately Indicates the Implications of an Economy's

question 39

Multiple Choice

Which of the following most accurately indicates the implications of an economy's production possibilities curve?

• A) If all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
• B) If all the resources of an economy are being used efficiently, it is generally possible to produce more of one good without having to sacrifice the production of other goods.
• C) Over time, it is generally impossible for a country to expand its production of goods.
• D) An economy will automatically move toward a point that lies outside of the production possibilities constraint unless proper government policy constrains production.

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Legal Structure

Pertains to the type of legal organization an entity chooses for the formation of their business, such as a corporation, partnership, limited liability company (LLC), or sole proprietorship.

Sole Proprietorship

A business structure where a single individual owns, operates, and is personally responsible for all aspects of the business.

Legal Structure

The legal organization of a company, determining its legal personality, liability, and taxation methods. Examples include sole proprietorship, partnership, corporation, and LLC.