If the Production Possibilities Frontier Between Bottled Water and Water

question 163

Multiple Choice

If the production possibilities frontier between bottled water and water in a jug is a straight line,which of the following statements would be correct?

• A) A large amount of unemployment must exist.
• B) Resources are equally productive at producing either product.
• C) There is no tradeoff between the two goods.
• D) There is no decrease in the production of one good when the production of the other is increased.
• E) Producing more of one good gives the economy a free lunch.

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Definitions:

Distributive Unfairness

Perceived inequality in the distribution of resources or rewards.

Procedural Fairness

The perception that the processes used to make decisions and resolve disputes are fair.

Interactional Fairness

The perceived fairness of the interpersonal treatment people receive as decisions are made, including respect, dignity, and sensitivity.

Discrepancy Theory

A concept suggesting that dissatisfaction arises when there is a gap between one's desires and reality, influencing motivation and emotion.