Which of the Following Is an Example of a Pure

question 142

Multiple Choice

Which of the following is an example of a pure public good?

• A) A bus.
• B) A mall.
• C) A teddy bear.
• D) An army.
• E) An automobile.

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Definitions:

Production Possibilities Curve

A graph that shows the various combinations of outputs that a society can produce if all its resources are being used efficiently.

Trading Possibilities Curve

A graph that shows the maximum amount of goods a country can produce, given its resources, and hence the possible extents of trade with other countries.

International Exchange Ratio

The rate at which the goods and services of one country can be traded for those of another.

Production Possibilities Curves

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can produce given its available resources and technology.