Which of the Following Is NOT True Concerning a Society's

question 327

Multiple Choice

Which of the following is NOT true concerning a society's production possibilities frontier (PPF) ?

• A) It reveals the maximum amount of any two goods that can be produced from a given quantity of resources.
• B) Tradeoffs occur when moving along a PPF.
• C) Production efficiency occurs when production is on the frontier itself.
• D) Consumers will receive equal benefits from the two goods illustrated in the PPF.

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Definitions:

Net Increase

The overall rise in a particular number after all deductions or decreases have been considered.

Units of X

A term commonly used in economics and other disciplines to denote a quantity or amount of a particular good or service referred to as "X."

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods such that the higher the function's value, the higher the level of satisfaction.

Price Increase

A situation where the cost of goods or services rises over a period.