-A Country Producing a Combination of 9 Units of Guns

question 225

Short Answer

-A country producing a combination of 9 units of guns and 6 units of butter would be _____________ (outside/on/inside)the production possibilities curve.

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Definitions:

Consumer Surplus

The discrepancy in the overall amount consumers are inclined and able to expend on a product or service versus what they actually fork out.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Unit Price

The cost of a single unit of a product or service, which allows for easier comparison of costs among similar items.

Quantity Q

A specific quantity of goods or services, often used in discussions of supply and demand or economic models.