Exhibit 2-7 Production Possibilities Curve

question 23

Multiple Choice

Exhibit 2-7 Production possibilities curve
For the economy shown in Exhibit 2-7 to operate at point C, it must:

• A) be willing to lower the price of grain.
• B) use its given resources more efficiently than it would at point A.
• C) experience resource unemployment.
• D) experience an increase in its resources and/or an improvement in its technology.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

Unconditioned Stimulus

In classical conditioning, an initially neutral stimulus that automatically triggers a reflexive response without any need for prior learning.

Classical Conditioning

A teaching process in which two stimuli are repeatedly linked; a response that is initially prompted by the second stimulus becomes prompted by only the first stimulus over time.

Observational Learning

Learning that occurs by observing and imitating the behaviors of others.