If an Economy Is Operating at a Point Inside the Production

question 58

Multiple Choice

If an economy is operating at a point inside the production possibilities frontier, then:

• A) some of the economy's resources are unemployed.
• B) the production decisions are made by the government.
• C) unlimited resources must satisfy scarce desires.
• D) using the existing resources efficiently will shift the production possibilities frontier outward.
• E) society is paying too many wages.

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Definitions:

Deposit

A sum of money placed into an account or given to a party as security for the fulfillment of a contract.

Return

The gain or loss on an investment over a specific period, typically expressed as a percentage of the investment's initial cost.

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.

Income

Money received, especially on a regular basis, for work or through investments.