A PPF Bows Outward Because

question 358

Multiple Choice

A PPF bows outward because

• A) not all resources are equally productive in all activities.
• B) consumers prefer about equal amounts of the different goods.
• C) entrepreneurial talent is more abundant than human capital.
• D) resources are used inefficiently.

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Definitions:

Statutorily Granted

Pertains to rights or powers given or enforced by a legislative body or statute.

Government Subsidy

Financial assistance provided by the government to individuals, organizations, or industries to support their operation or reduce the price of their products.

Market Price

The current price at which an asset or service can be bought or sold in the market.

Taxable Income

The portion of income that is subject to taxation by a government, after all deductions and exemptions.