If a Country Is Operating at a Point of Production

question 143

Multiple Choice

If a country is operating at a point of production efficiency,

• A) it enjoys a free lunch when increasing production.
• B) it produces on its production possibilities frontier.
• C) it must specialize in the production of a good.
• D) it operates on its trade line.
• E) it cannot be producing at its point of comparative advantage.

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Definitions:

Calendar Year

The period of time from January 1 to December 31 in the Gregorian calendar.

Sales Estimate

An approximation of the number or monetary value of sales that a company expects to achieve within a certain period.

Cash-Out Situation

A scenario where an investor or business needs to liquidate assets or securities to cover liabilities or other cash needs.

Collection Period

The amount of time it takes for a business to receive payments owed by its customers.