Which of the Following Is Assumed in Constructing a Typical

question 160

Multiple Choice

Which of the following is assumed in constructing a typical production possibilities curve?

• A)the economy is using its resources inefficiently.
• B)resources are perfectly shiftable among alternative uses.
• C)production technology is fixed.
• D)the economy is engaging in international trade.

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Definitions:

Interest Rates

A charge, calculated as a percentage of the principal, demanded by a lender from a borrower for assets' usage.

Disposable Income

Income that remains for saving or spending after direct taxes (such as income tax) have been deducted from an individual's earnings.

Saving

The process of setting aside a part of current earnings for future use.

Interest Rate

Interest Rate is the cost of borrowing money, typically expressed as a percentage of the amount borrowed, affecting savings, investment, and consumer spending.