Following Is the Production Possibilities Schedule for an Economy Producing

question 63

Multiple Choice

Following is the production possibilities schedule for an economy producing two goods, Good A and Good B.Table 2.1

-Suppose a society begins by producing 3 units of X and 4 units of Y and then alters production to 4 units of X and 4 units of Y. If the quantity and quality of resources and the technology being used remain unchanged, then:

• A)3 units of X and 4 units of Y are a combination best represented by a point inside the production possibilities curve [PPC].
• B)we can conclude that the society has moved along the PPC.
• C)we can conclude that resources were being fully utilized at 3 units of X and 4 units of Y.
• D)we can conclude that resources were being efficiently utilized at 3 units of X and 4 units of Y.
• E)3 units of X and 4 units of Y are a combination best represented by a point outside the PPC.

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Definitions:

Coal-Using Industries

Sectors of the economy that significantly rely on coal as a primary source of energy or raw material.

Corn Syrup

A sweet syrup produced from corn starch, used widely in the food industry, particularly for sweetening processed foods and beverages.

Sweeteners

Substances added to food or beverages to enhance sweetness, which can be natural or artificial.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales.