If a Nation Is Operating at a Point Inside the Production

question 229

Multiple Choice

If a nation is operating at a point inside the production possibilities curve, it indicates that the nation could

• A) increase its production of both goods X and Y simultaneously.
• B) increase its production of one good, but only at the expense of reducing the other good.
• C) not produce any more of one of the goods X or Y.
• D) not employ any more resources, because all resources are now employed.

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Definitions:

Sales

The total amount of revenue generated by the selling of goods or services.

Merchandise

Goods to be bought and sold in any type of business.

Operating Expenses

The costs associated with running a business’s core activities on a day-to-day basis, including selling, administrative, and other expenses.

Cash Collections

The process or amount of collecting received payments from customers, typically for goods sold or services rendered.