Exhibit 2-15 Production Possibilities Curve

question 160

Multiple Choice

Exhibit 2-15 Production possibilities curve
-In Exhibit 2-15, inefficient resource use is shown by which of the following points?

• A) N.
• B) J.
• C) Q.
• D) L.
• E) P.

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Definitions:

Productive Economy

Refers to an economy that efficiently utilizes its resources to produce goods and services that meet the needs and wants of its population.

Commodity

Commodity denotes basic goods used in commerce that are interchangeable with other goods of the same type.

Allocation

The process of distributing resources, goods, or services in a particular way or to particular recipients.

Scarce Resources

Resources that are limited in supply and cannot fulfill all the uses and demands placed on them.