If a Society Is on Its Production Possibilities Frontier,and Decides

question 140

Multiple Choice

If a society is on its production possibilities frontier,and decides to produce more health care,

• A) the cost of producing an additional unit of health care will rise
• B) it must employ some previously unemployed resources
• C) its standard of living will rise
• D) some kind of inefficiency will occur
• E) the cost of producing an additional unit of some other good will rise

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Definitions:

Minimum Price

The lowest legally allowed price at which a good or service can be sold, often set to protect producers or promote fair trade.

Scenario 1-3

A hypothetical or real situation used to illustrate a particular case or outcome, typically numbered for organization.

Marginal Cost

Marginal cost is the change in total cost that arises when the quantity produced is incremented by one unit; it's the cost of producing one more unit of a good.