If an Economy Cannot Produce More of One Good Without

question 145

Multiple Choice

If an economy cannot produce more of one good without producing less of another good,this implies that which of the following has been achieved?

• A) allocative efficiency
• B) minimum marginal cost
• C) PPF efficiency
• D) production efficiency
• E) maximum marginal benefit

---

Definitions:

Present Value

The present value of a future amount of money or series of cash flows, based on a particular rate of return.

Future Cash Inflows

Projected cash earnings from investments, operations, or financial instruments over a specified future period.

Net Present Value

A method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Present Value

The value today of an anticipated sum of money or sequence of cash flows, when calculated with a certain return rate.