The Production Possibilities Curve Demonstrates the Basic Economic Principle That

question 173

Multiple Choice

The production possibilities curve demonstrates the basic economic principle that:

• A) market-based economies are more efficient.
• B) supply will determine demand in the economy.
• C) the production of more capital goods this year will cause the economy to produce less consumption goods next year.
• D) to produce more of any one thing, assuming full employment, the economy must produce less of something else.
• E) to produce more consumption goods this year requires the production of more capital goods this year.

---

Definitions:

Developmental Psychologists

Specialists in psychology who study the growth and changes in behavior, thinking, and emotions throughout a person's life.

Physiologically

refers to the functions and processes that occur within living organisms and their parts.

Behavioral

Relating to or concerning the actions or reactions of a person or animal in response to external or internal stimuli.

Mental Processes

Internal, covert activities of our minds, including thinking, reasoning, and memory.