-The Figure Above Shows a Production Possibilities Frontier

question 141

Multiple Choice

-The figure above shows a production possibilities frontier.In the figure,the economy faces a tradeoff when ________ cell phones and ________ DVDs.are produced.

• A) 3 million; 9 million
• B) 2 million; 9 million
• C) 3 million; 8 million
• D) 4.5 million; no
• E) 5 million; 15 million

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).

World War II

A worldwide war that spanned from 1939 to 1945, engaging the majority of the planet's countries, with all the major powers eventually splitting into two conflicting military coalitions: the Allies and the Axis.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment and deflation in most countries.

Production Possibilities Curve

A graphical representation illustrating the maximum quantity of two goods that can be produced within a given period under the conditions of a fixed amount of resources and technology.