The Production Possibilities Curve

question 88

Multiple Choice

The production possibilities curve:

• A)shows all of those levels of production which are consistent with a stable price level.
• B)indicates that any combination of goods lying outside the curve is economically inefficient.
• C)is a frontier between all combinations of two goods which can be produced and those combinations which cannot be produced.
• D)shows all of those combinations of two goods which are most preferred by society.

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Definitions:

National State

A political entity characterized by a defined territory, permanent population, government, and capacity to enter into relations with other sovereign states.

Sherman Antitrust Act

Passed in 1890, first law to restrict monopolistic trusts and business combinations; extended by the Clayton Antitrust Act of 1914.

Theodore Roosevelt

The 26th president of the United States, known for his progressive policies, conservation efforts, and leadership of the Rough Riders.

Western Railroads

The network of train lines established in the Western United States during the 19th and early 20th centuries, significant for their role in the expansion and development of the region.