When All of the Available Factors of Production Are Being

question 64

Multiple Choice

When all of the available factors of production are being efficiently employed,the

• A) economy is producing at a point within its PPF.
• B) economy is producing at a point on its PPF.
• C) economy is producing at a point beyond its PPF.
• D) PPF disappears.
• E) opportunity cost of changing production is infinite.

---

Definitions:

Artistic Works

Original items or creations, like paintings, music, literature, etc., often protected by copyright law.

Capital Assets

Long-term assets such as property, plant, and equipment that are used or held for investment purposes, the sale of which results in capital gains or losses.

Gift

Something voluntarily transferred by one person to another without compensation.

Short-term Capital Loss

A loss realized from the sale or exchange of a capital asset held for one year or less.