Which of the Following Is True of a Production Possibilities

question 71

Multiple Choice

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

• A) It reveals the maximum amount of any two goods that can be produced from a fixed quantity of resources.
• B) It reveals the ideal level of technology for a country.
• C) It assumes that the prices of the two products are equal.
• D) For a country that could produce many different goods, it shows which two goods are most important to produce.

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Definitions:

Oil Field

An area underlain by reservoirs containing petroleum and natural gas extractable through drilling.

Volcanoes

Openings in the Earth's crust from which molten rock, ash, and gases are ejected, often forming mountains or craters.

Noxious Gases

Refers to harmful or toxic gases, which can be produced by natural processes such as volcanic eruptions or through human activities.

Volcanic Ash

Particles of volcanic tephra that are sand-sized or smaller, and accumulations of such material.