Moving from One Point to Another on a Production Possibilities

question 211

Multiple Choice

Moving from one point to another on a production possibilities frontier implies

• A) increasing the production of both goods.
• B) decreasing the production of both goods.
• C) increasing the production of one good and decreasing the production of another.
• D) holding the production levels of both goods constant.
• E) changing the amount of factors of production that are employed.

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Definitions:

Assumptions

Conditions or principles that are taken as true or as certain to happen, without proof, for the purpose of argument or investigation.

Factor Of Production

A resource used in the production process to generate goods and services, such as labor, land, and capital.

Output

The aggregate output of goods or services from a firm, industry, or the economy as a whole.

Academic Probation

A warning status given to students whose academic performance falls below an institution's requirement.