When Will a Production Possibilities Frontier Be Linear and Not

question 165

Multiple Choice

When will a production possibilities frontier be linear and not bowed out?

• A)If no tradeoffs exist.
• B)If the tradeoff between the two goods is always at a constant rate.
• C)If unemployment is zero.
• D)If resources are allocated efficiently.

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Definitions:

Anticipatory Repudiation

A declaration by one party to a contract of their intention not to fulfill their future obligations as agreed.

Dissolution

The first stage in the termination of a partnership.

Liquidation

The process in which a debtor turns over all assets to a trustee.

Death Of Corporation

The termination of a corporation's legal existence, either by voluntary dissolution or through legal action.