Points Inside a Production Possibilities Curve Are ________

question 80

Multiple Choice

Points inside a production possibilities curve are ________.

• A) inefficient, because more goods can be produced with the available resources
• B) inefficient, because they represent the production of only one good
• C) efficient, because the combinations represented by those points are attainable
• D) efficient, because production is maximum at those points with the available resources

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Definitions:

Merchant Ships

Commercial vessels used in international trade to transport goods and sometimes passengers.

Risk Aversion

The tendency of individuals to prefer outcomes with lower uncertainty over outcomes with higher uncertainty, even if the latter may offer a higher expected return.

Equilibrium Premium

The price at which the supply and demand for insurance coverage balance, setting a market rate for premiums.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the point where the supply and demand curves intersect.