If an Economy Is Operating on Its Production Possibility Frontier,which

question 137

Multiple Choice

If an economy is operating on its production possibility frontier,which of the following statements is true?

• A)Products are produced using inefficient production technology.
• B)The capacity utilization rate is less than full production.
• C)The economy's labor force is fully employed.
• D)A fall in the price of an input will enable the economy to produce outside the production possibility frontier.

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Definitions:

Payment Interval

The scheduled period between payments made by a borrower or payer to a lender or payee.

Compounded Quarterly

A financial calculation where interest is added to the principal four times a year, resulting in an increased amount on which subsequent interest calculations are based.

Lump Sum

A one-time transaction made at a specific moment, rather than several payments spread across a period.

Withdraw

To remove funds from a bank account or investment.