On a Graph of a Production Possibilities Curve, If a Point

question 75

Multiple Choice

On a graph of a production possibilities curve, if a point is attainable, then it:

• A)must be efficient.
• B)might or might not be efficient.
• C)is efficient only if it does not exhaust all currently available resources.
• D)must completely exhaust all currently available resources.

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Definitions:

Price Floor

A government-imposed minimum price for goods or services, intended to prevent prices from falling below a certain level.

Market-clearing Price

The price at which the quantity demanded by buyers equals the quantity supplied by sellers, eliminating any surplus or shortage in the market.

Surplus

The condition in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Foreign Currency

Currency used in a country other than one's own, involved in international trade, investments, and travel.