The Production Possibilities Curve Illustrates the Basic Principle That

question 4

Multiple Choice

The production possibilities curve illustrates the basic principle that

• A) an economy's capacity to produce increases in proportion to its population.
• B) if the resources of an economy are being used efficiently, more of one good can be produced only if less of another is produced.
• C) an economy will automatically seek the output at which all of its resources are fully employed.
• D) the distribution of income among households is the major determinant of the economic welfare of a nation.

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Definitions:

External Attributions

The process of attributing the cause of one's own or others' behavior to external factors or situational circumstances.

Individualism

A societal concept that prioritizes individual liberty and autonomy above the interests or management of the group or government.

Dispositional Attributional Bias

The tendency to attribute people's behaviors to their character or personality while underestimating situational influences.

Group Goals

Objectives or outcomes that a group collectively seeks to achieve, which can influence the behavior and cooperation of its members.