Suppose a Production Possibilities Frontier (PPF)has Been Plotted on a Graph.If

question 94

Multiple Choice

Suppose a production possibilities frontier (PPF) has been plotted on a graph.If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods,then a point outside the PPF represents:

• A)a smaller quantity of consumer goods than that represented by a point inside the PPF.
• B)an inefficient output combination of the two goods in the economy.
• C)an unattainable output combination of the two goods in the economy.
• D)an output combination of more consumer goods than capital goods.
• E)a smaller quantity of capital goods than that represented by a point inside the PPF.

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Imports

Goods or services brought into one country from another for sale or exchange.

Exchange Rate

The value of one currency for the purpose of conversion to another, impacting trade and economics globally.

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The action of conducting business or trading between parties, typically involving the exchange of goods, services, money, or information.

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