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:

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Internal cognitive symbols that represent external reality or abstract concepts, enabling understanding and reasoning.

Essences

The intrinsic nature or indispensable quality of something, especially something abstract, that determines its character.

DNA

Stands for Deoxyribonucleic Acid, which is a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Environment

The environment or circumstances under which a person, animal, or plant exists or functions.