Which of the Following Statements Is True

question 13

Multiple Choice

Which of the following statements is true?

• A) In a world of efficiently used scarce resources,more of one good necessarily means less of some other good.
• B) The law of increasing opportunity costs assumes that all people have the same ability to produce goods.
• C) Efficiency implies that it is impossible to get more of one good without getting less of another.
• D) Even if a country has unemployed resources,it can still be operating on its production possibilities frontier (PPF).
• E) a and c

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Definitions:

Interdependence

The mutual reliance between two or more entities, where the actions of one significantly affect the other, prevalent in global economies.

Gains From Trade

The benefits that parties obtain from engaging in voluntary trade, often resulting in an increase in overall economic efficiency and consumer welfare.

Gain From Trade

Refers to the increase in output and consumption that countries experience through specialization and exchange of goods and services.

Production Possibilities Frontier

An illustration that represents the utmost production capabilities for any two commodities, based on a combination of inputs like resources and additional elements.