When Operating on the Production Possibilities Frontier, Producing More of One

question 68

Multiple Choice

When operating on the production possibilities frontier, producing more of one good generally results in less of the other good due to the:

• A) opportunity cost.
• B) changing technology.
• C) theory of marginal cost.
• D) maximization model.

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Definitions:

American System

An economic plan that played a prominent role in American policy during the first half of the 19th century, rooted in the belief in protectionism, a national bank, and internal improvements (such as roads and canals) to foster commerce and strengthen the nation.

Whigs

A political party active in the 19th century United States that advocated for federal government support of internal improvements and a national bank.

Federal Government

The national government of the United States, created by the Constitution, that encompasses the executive, legislative, and judicial branches.

Welfare Of The People

The general health, happiness, and safety of the population, often considered a primary goal of government policies and social programs.