When an Economy Is Operating Inside Its Production Possibilities Frontier,we

question 171

Multiple Choice

When an economy is operating inside its production possibilities frontier,we know that

• A)there are unused resources or inefficiencies in the economy.
• B)all of the economy's resources are fully employed.
• C)economic growth would have to occur in order for the economy to move to a point on the frontier.
• D)in order to produce more of one good,the economy would have to give up some of the other good.

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Definitions:

Net Worth

The difference between the total assets and total liabilities of an individual, company, or entity.

Liabilities

Financial obligations or debts that a business or individual owes to others.

Assets

Resources owned by a business or individual that have economic value and can provide future benefits.

Taxable Income

The portion of an individual's or organization's income that is subject to taxation by governing authorities.