A Country Currently Is Using All Its Land to Produce

question 88

Multiple Choice

A country currently is using all its land to produce wheat and grapes.However,the land most suited to growing grapes is being used to produce wheat,and the land most suited to growing wheat is being used to produce grapes.Which of the following statements is true?

• A) The country is operating outside of its production possibilities frontier.
• B) The country is operating along its production possibilities frontier.
• C) Wheat production must be sacrificed if the country increases grape production.
• D) Grape production must be sacrificed if the country increases wheat production.
• E) The country is operating inside its production possibilities frontier.

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Definitions:

Cover

In commercial transactions, the act of purchasing substitute goods when a seller fails to fulfill a contract.

Incidental Damages

Additional minor costs that a party incurs when the other party fails to fulfill a contract.

Unpaid Seller

A seller who has not received payment for goods supplied.

Cover

A legal remedy in contract law where the aggrieved party purchases goods or services, similar to those agreed upon, from a different source due to the original party's failure to comply.