Use the Following to Answer Question(s)

question 23

Multiple Choice

Use the following to answer question(s) :
Exhibit: Strawberries and Submarines

-(Exhibit: Strawberries and Submarines) The downward slope of the production possibilities curve implies that resources:

• A) must be used efficiently.
• B) are scarce.
• C) should not be wasted.
• D) should be allocated so that approximately equal amounts of both goods are produced.

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Definitions:

Total Quantity Demanded

The sum of all individual quantities of a good or service demanded at a given price level within a specified period.

Public Good

A product that is non-excludable and non-rivalrous in consumption, meaning its use by one individual does not reduce its availability to others.

Excludability

A characteristic of a good or service that allows owners or producers to prevent others from using it without permission.

Marginal-cost-marginal-benefit Rule

A principle suggesting that optimal decision making involves continuing an activity until the additional benefits no longer exceed the additional costs.