A Point Outside the Production Possibilities Frontier

question 118

Multiple Choice

A point outside the production possibilities frontier

• A)represents unemployment of resources
• B)represents full employment of resources
• C)would not represent an efficient combination of goods
• D)cannot be reached using the available technology
• E)is less desirable than one that lies inside the frontier

---

Definitions:

Economic Profits

Profits calculated by subtracting both explicit (direct payments) and implicit (opportunity) costs from total revenues.

Market Price

The ongoing selling or buying rate for an asset or service in a certain market.

Satisfier Factors

Elements related to the nature of the job itself, such as achievement, recognition, and work itself, that lead to job satisfaction.

Two-Factor Theory

A psychological theory proposed by Frederick Herzberg that suggests job satisfaction and dissatisfaction arise from two different sets of factors: motivators and hygiene factors.