Points That Lie Below the Production Possibilities Curve Are Inefficient

question 55

Multiple Choice

Points that lie below the production possibilities curve are inefficient because:

• A)more of one good could be produced without producing less of the other.
• B)producing more of one good means producing less of the other.
• C)producers face scarcity.
• D)too many goods are being produced.

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Definitions:

Microcredit

A financial service providing small loans to individuals or groups in low-income situations, aimed at enabling entrepreneurship and self-sufficiency.

World Bank

An international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects.

Foreign Aid Policies

Government strategies and actions aimed at providing economic, technical, or military assistance to other countries.

Debt Repayment

The act of paying back borrowed money, usually including both the principal amount and any accrued interest.