There Will Always Be Another Product Mix Allocation Pair That

question 31

Multiple Choice

There will always be another product mix allocation pair that will make all consumers and producers better off unless MRT ___ MRS.

• A) =
• B) <
• C) >

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Definitions:

Production Possibilities Curve

A graph that shows the different quantities of two goods that an economy can produce using all of its resources efficiently.

Scarcity

Fundamental concept of economics that indicates that there is less of a good freely available than people would like.

Production Possibilities Curve

A graphical representation that shows the maximum combination of goods or services that can be produced with a fixed amount of resources.

Efficiently

Pertains to achieving maximum productivity with minimal wasted effort or expense.