Figure 3-2 Brazil's Production Possibilities Frontier

question 13

Multiple Choice

Figure 3-2
Brazil's Production Possibilities Frontier
-Refer to Figure 3-2.The fact that the line slopes downward reflects the fact that

• A)for Brazil,it is more costly to produce peanuts than it is to produce cashews.
• B)Brazil will produce more peanuts and fewer cashews as time goes by.
• C)Brazil faces a tradeoff between producing peanuts and producing cashews.
• D)Brazil should specialize in producing cashews.

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Definitions:

Movie Theater Tickets

Physical or electronic vouchers that grant the holder the right to enter a movie theater and view a film.

Efficient Allocation

The optimal distribution of resources among competing needs or uses in a way that maximizes the net benefit achieved from those resources.

Exchange Economy

Market in which two or more consumers trade two goods among themselves.

Production Process

The series of steps or actions taken to transform inputs (like labor and materials) into final products or services.