Some of Our Farm Fields Are Being Left Unused

question 99

Multiple Choice

Some of our farm fields are being left unused.Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis) ?

• A) There are no implications because the PPF deals only with resources in use.
• B) The PPF cannot be drawn if some resources are idle.
• C) With unemployed resources,we are at a point below (inside)the PPF.
• D) The PPF would be upward sloping.

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Definitions:

Marginal Cost

The additional charge of creating one more unit of a product or service.

Peak-Load Pricing

A pricing strategy that involves adjusting prices in response to fluctuations in demand, particularly during peak usage times.

Marginal Cost

The expense associated with the production of an extra unit of a product or service.

Rebates

Rebates are partial refunds to purchasers of products or services, often used as a promotional tool by marketers to increase sales or the perceived value of a product.