Any Point NOT on the Production Possibilities Curve Cannot Be

question 16

Multiple Choice

Any point NOT on the production possibilities curve cannot be optimal. What reasoning supports this?

• A) Operating inside the curve means sacrificing economic growth for current consumption, and economic growth is always a goal worth pursuing.
• B) Operating inside the curve leads to inflation and inflation can be very costly.
• C) Operating inside the curve is inefficient and represents wasted resources.
• D) A point inside the curve implies that society is not facing up to the problem of scarcity.

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Definitions:

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Language

A system of symbols, sounds, and rules used for communication and the expression of ideas, thoughts, and emotions.

Myelin

The fatty substance coating axons that speeds the transmission of nerve impulses from neuron to neuron.