A Point Inside the Production Possibilities Curve Represents a Combination

question 82

Multiple Choice

A point inside the production possibilities curve represents a combination of goods that is

• A) inefficient.
• B) efficient.
• C) unattainable.
• D) attainable.

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Definitions:

Factor X

An unspecified or unknown factor that can influence outcomes in an economic model or analysis.

Production Function

A mathematical model that relates the amount of output produced to the quantities of various inputs or factors of production.

Isoquant

A curve that represents all combinations of inputs that produce the same level of output in production theory.

Output

The amount of goods or services produced by a company, industry, or economic system.