If Resources Are Better Suited Toward the Production of One

question 98

Multiple Choice

If resources are better suited toward the production of one good than toward another good, then the PPF for those two goods is

• A)a straight line.
• B)bowed outward.
• C)upward sloping.
• D)a vertical line.

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Definitions:

Total Revenue

The gross income a company generates from selling products or offering services, before deducting any costs.

Price Rises

Occurs when the cost of goods or services increases over a period of time, influenced by factors like inflation, supply and demand imbalances, or increased production costs.

Demand Is Elastic

A condition where the quantity demanded of a good or service is sensitive to changes in its price, illustrating a greater than proportional response.

Total Revenue

The total amount of money generated by the sale of goods or services before any costs are subtracted.