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

question 114

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 curve unless proper government policy constrains production.

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Definitions:

Focal Date

A specific point in time that serves as a reference or target for events or operations.

Equivalent Payment

A term related to finance that typically involves finding a payment amount that equates to an equal value under different conditions.

Scheduled

Planned or organized for a certain time or date.

Focal Date

In finance, it refers to a specific point in time used as a reference or base date for calculating the value of financial instruments or for determining the timing of cash flows.