Points That Lie Below the Production Possibilities Curve Are Inefficient

question 25

Multiple Choice

Points that lie below the production possibilities curve are inefficient because:

• A) more of one or both goods could be produced using currently available resources without giving up production of another good.
• B) producers are not specializing.
• C) producers face scarcity.
• D) too many goods are being produced.

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Definitions:

Mental Capacities

The various faculties of the mind, such as understanding, reasoning, thought, memory, and the ability to learn.

David Wechsler

A psychologist best known for developing several widely used intelligence tests, including the Wechsler Adult Intelligence Scale.

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which proposes that people have different kinds of intelligences, not just a single general intelligence.

Independent Intelligences

Refers to the theory that intelligence cannot be encapsulated by a single, general ability but is composed of various distinct intellectual faculties.