Using the Production Possibilities Curve, Which of the Following Illustrates

question 105

Multiple Choice

Using the production possibilities curve, which of the following illustrates an inefficient use of resources?

• A) a movement off the curve in a southwest direction
• B) a movement to the southeast along the curve
• C) a movement to the northeast along the curve
• D) a movement off the curve in a northeast direction

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Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often used to discourage their use or raise revenue.

Shift

A change in position, direction, or tendency, often referring to movements in supply or demand curves in economics.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditures.

Excise Tax

A tax imposed on specific goods, services, or activities, often with the aim of reducing consumption of those items or generating revenue.