Which of the Following Is True of a Production Possibilities

question 71

Multiple Choice

Which of the following is true of a production possibilities curve?

• A) It reveals the maximum amount of any two goods that can be produced from a fixed quantity of resources.
• B) It reveals the ideal level of technology for a country.
• C) It assumes that the prices of the two products are equal.
• D) For a country that could produce many different goods, it shows which two goods are most important to produce.

---

Definitions:

Orientation

An introduction or adjustment to a new environment, situation, or concept.

Nature

The inherent qualities or characteristics of a person or thing; also refers to the physical world and its biological processes.

Interests

The stakes or investments that individuals or groups have in a particular issue, outcome, or situation.

Personal Intervention

Direct and personal involvement in attempting to alter a situation or outcome.