Which of the Following Statements Is Correct

question 271

Multiple Choice

Which of the following statements is correct?

• A) If capital is idle, the economy is producing at its full potential.
• B) The production possibilities frontier shows that there are no limits to production.
• C) A tradeoff is a limit that forces an exchange or a substitution of one thing for something else.
• D) Any point on or within the PPF is production efficient.
• E) None of the above answers are correct.

---

Definitions:

Unbiased

Free from prejudice or favoritism, presenting or considering information in a fair and objective manner.

Middle Aged

Referring to the period of life, usually between the ages of about 45 and 65, often considered as a time of maturity but before old age.

Critical Thinker

An individual who actively seeks, evaluates, and applies information in a logical manner to solve problems and make decisions.

Emotionally Charged

Describes situations or information that evoke strong emotional reactions.