Which of the Following Is NOT Illustrated by a Production

question 260

Multiple Choice

Which of the following is NOT illustrated by a production possibilities frontier?

• A) scarcity
• B) opportunity cost
• C) necessity for choice
• D) who gets the goods

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Definitions:

Prices

The amount of money required to purchase a good or service, often determined by supply and demand dynamics.

Consumer Sovereignty

The determination by consumers of the types and quantities of goods and services that will be produced with the scarce resources of the economy; consumers’ direction of production through their dollar votes.

Legislation

Laws or legal statutes passed by a legislative body, governing body, or the process of enacting laws.

Market System

An economic system in which decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.