If an Economy Is Operating at a Point Inside the Production

question 231

Multiple Choice

If an economy is operating at a point inside the production possibilities curve,

• A) its resources are not being used efficiently.
• B) the curve will begin to shift inward.
• C) the curve will begin to shift outward.
• D) This is a trick question because an economy cannot produce at a point inside the curve.

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Definitions:

Federally Funded

Referring to programs, projects, or institutions that receive financial support from the federal government.

Evaluations

Systematic assessments of the value, quality, or importance of something, often used to guide decision-making or improvements.

Research Projects

Systematic work undertaken to increase the stock of knowledge, often involving the collection and analysis of data.

Cost Analyses

Evaluation of the costs associated with a project or program, in relation to its expected benefits, to determine its economic viability.