The Production Possibilities Boundary Shows Possible Combinations of Guns and Butter

question 41

Multiple Choice

The production possibilities boundary shows possible combinations of guns and butter that can be produced by a country.The lower diagram shows demand and supply for butter. FIGURE 12-2
-Refer to Figure 12-2.Suppose demand and supply for butter are shown by D and S,respectively.And suppose the economy is at point (b) on the production possibilities boundary,producing units of butter.We can say that this economy is ________ efficient because ________.

• A)allocatively; guns and butter are both produced to the point where the marginal cost to producers equals the marginal value to consumers
• B)productively; the marginal cost of production across guns and butter is equated
• C)allocatively; the price of guns is equal to the price of butter
• D)productively; the economy is operating at a point inside the production possibilities boundary
• E)allocatively; the economy is operating at a point on the production possibilities boundary

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Definitions:

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions for the development, functioning, and reproduction of all known living organisms and many viruses.

Protein

Polymer of amino acids; often consisting of one or more polypeptides and having a complex three-dimensional shape.

Viral RNA Genome

The genetic material of RNA viruses, which consists of ribonucleic acid (RNA) instead of DNA.

Mature Capsid

The protein shell of a virus that encloses its genetic material, fully formed and capable of infecting a host cell.