-The Figure Above Shows the Production Possibilities Frontier for a Country.If

question 165

Multiple Choice

-The figure above shows the production possibilities frontier for a country.If the country is producing at point D,then the

• A) resources are being used efficiently.
• B) technology associated with producing SUVs and compact cars is advancing.
• C) resources are not being used efficiently and/or are unemployed.
• D) production of SUVs and compact cars is maximized.
• E) None of the above answers are correct because it is not possible to produce at point D.

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Definitions:

Producer Surplus

The difference between what producers are willing to sell a good for and the price they actually receive.

Trade

The trade of goods, services, or both among two or more entities, either within a single economy or across different ones.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive.

Trade

The exchange of goods, services, or both between two or more parties, either within a country or between countries.