The Production Possibilities Curve Illustrates the Basic Principle That

question 59

Multiple Choice

The production possibilities curve illustrates the basic principle that

• A) an economy's capacity to produce is unrelated to its population.
• B) if all the resources of an economy are being used efficiently, more of one good can be produced only if more of another good is produced.
• C) an economy will automatically move toward a point at which all of its resources are being used inefficiently.
• D) 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.

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Definitions:

Partnership Business

A partnership business is a type of business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.

Partnership Capital

Refers to the total resources contributed by partners to a partnership for the purpose of starting or maintaining the business operations.

Joint Ventures

Business arrangements in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.

Implied Authority

Power that is not explicitly granted but is assumed to be authorized due to the nature of an individual's position or relationship.