Which of the Following Most Accurately Indicates the Implications of an Economy's

question 114

Multiple Choice

Which of the following most accurately indicates the implications of an economy's production possibilities curve?

• A) If all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
• B) If all the resources of an economy are being used efficiently, it is generally possible to produce more of one good without having to sacrifice the production of other goods.
• C) Over time, it is generally impossible for a country to expand its production of goods.
• D) An economy will automatically move toward a point that lies outside of the production possibilities curve unless proper government policy constrains production.

---

Definitions:

Pressure Plate

The pressure plate holds the clutch disc against the flywheel. When the clutch is released, the pressure plate releases the force against the clutch disc.

Clutch Disc

The component of a clutch assembly that, when engaged, transfers power from the engine to the transmission via friction with the flywheel.

Flywheel

A mechanical device specifically designed to efficiently store rotational energy, which helps stabilize the speed of an engine.

Torque Converter

The torque converter connects the engine’s crankshaft to the input shaft of an automatic transmission.