The Production Possibilities Curve Shows That

question 22

Multiple Choice

The production possibilities curve shows that:

• A) some of one good must be given up to get more of another good in an economy that is operating efficiently.
• B) no output combination is impossible.
• C) an economy that is operating efficiently can have more of one good without giving up some of another good.
• D) scarcity can be eliminated.

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Definitions:

Holy Roman Empire

A complex multi-ethnic, political entity in Europe that existed from 962 to 1806, comprising territories in present-day Germany, Austria, Switzerland, Italy, and beyond.

Treaty of Paris

A significant agreement signed in 1783 that ended the American Revolutionary War, acknowledging American independence from Britain.