The Graph Above Shows the PPC for a Country That

question 3

Multiple Choice

The graph above shows the PPC for a country that can produce oil or televisions.
The straight line is the trade line and CPC if production is at Point A.
Which of the following is a true statement?

• A)This country should produce relatively more oil and relatively fewer televisions.
• B)This country should produce relatively more televisions and relatively less oil.
• C)This country should produce more of both goods.
• D)This country is producing the optimal mix of oil and televisions to maximize its income.

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Definitions:

Fed's Purchase

The buying of securities or assets by the Federal Reserve to inject money into the banking system and stimulate economic activity.

Political Pressure

The exertion of influence by individuals or groups to achieve certain actions or policies from government or other authority figures.

Board of Governors

The leading body of a central banking system, such as the Federal Reserve in the United States, responsible for overseeing the nation's monetary policy.

Appointed

Selected or designated for a position or duty, typically by an authority, rather than through election.