Suppose That an Economy Is Producing on Its Production Possibilities

question 145

Multiple Choice

Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good. This economy

• A) should not change its production, because it cannot improve its allocation by shifting resources.
• B) can improve its allocation by lowering the unemployment rate.
• C) can improve its allocation by producing more of one good and less of the other.
• D) can improve its allocation by producing more of both goods.

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Definitions:

Psychologists

Professionals in the field of psychology, which involves the study of the mind and behavior.

Development

The process of growth and change that a person undergoes throughout their life, encompassing physical, cognitive, and emotional development.

Prenatal Development

The procedure of evolving and enlarging within the womb, starting at conception and concluding at birth.

Zygotic Stage

The earliest developmental stage of an embryo, starting from fertilization until it becomes a blastocyst before implantation.