Which of the Following Is True of the Production Possibilities

question 96

Multiple Choice

Which of the following is true of the production possibilities curve?

• A) It assumes a fixed quantity of resources.
• B) It assumes the prices of the products considered are equal.
• C) A point inside the curve is efficient.
• D) All of the above are correct.

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Definitions:

Concentrated Benefits

Economic or political benefits that are narrowly distributed to a small, specific group, often leading to imbalanced influence or decision-making.

Diffuse Costs

Diffuse costs are expenses that are spread out and not easily attributed to a single product, project, or activity, often indirect in nature.

Unintended Consequences

Outcomes that are not the ones foreseen or intended by a purposeful action.

Domestic Clothing Factories

Factories located within a country's borders that manufacture clothing and apparel for local consumption or export.