The Figure Given Below Represents the PPC in Two Nations

question 68

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?

• A)The market system is not entirely fair but it creates incentives to increase supplies and improve standards of living.
• B)The random process of allocation allows individuals to acquire purchasing power and enhances the value of the resources that they own.
• C)Since the government system does not distinguish between those who have income and those that do not, government allocation of resources is the most efficient.
• D)There will be no shortages under the first-come first-serve basis of allocation.
• E)A random process of allocation is fair in the sense that everyone gains and there are no losers.

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Definitions:

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation.

Adjustment

The process of adapting or becoming better suited to a particular situation or set of conditions.

Pressure

Pressure is the sense of urgency or stress experienced by an individual in response to high demands, expectations, or external forces, often affecting performance and decision-making.

Frustration

Frustration is an emotional response to opposition, related to anger, annoyance, and disappointment, caused by an inability to achieve something or by a perceived lack of control over a situation.