Figure 2-6 -When an Economy Is Operating Inside Its Production Possibilities Frontier

question 208

Multiple Choice

Figure 2-6
-When an economy is operating inside its production possibilities frontier, what do we know?

• A)There are unused resources or inefficiencies in the economy.
• B)The economy is operating with efficiency.
• C)Moving to a point on its production possibilities frontier would be economic growth.
• D)To produce more of one good, the economy would have to give up some of the other good.

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Definitions:

Sole Proprietorship

A form of business ownership where a single individual owns and runs the business, bearing full responsibility for its assets and liabilities.

Legal Structure

The framework within which an organization operates, defined by the law, including entities like corporations, partnerships, and sole proprietorships.

Trade Alliance

An agreement between two or more parties, often countries or companies, to foster trade and economic cooperation.

Venture Capitalists

Investors who provide capital to startup companies and small businesses with perceived long-term growth potential in exchange for equity.