Figure 113 Shows Mendork's Production Possibility Curve for the Only Two

question 49

Multiple Choice

Figure 1.13 shows Mendork's production possibility curve for the only two goods that it produces-guns and butter.

-Refer to Figure 1.13 to answer this question.Which of the following statements is correct if Mendork is currently producing 5 tonnes of butter and 8 guns?

• A)This society is using competition to coordinate its economic activities.
• B)This society is experiencing either unemployment or inefficiency.
• C)This economy is experiencing full employment.
• D)This society is not adequately answering the "for whom" question.
• E)This economy is growing quickly.

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Definitions:

Securities Exchange Commission

A U.S. federal agency that oversees the securities markets and protects investors by maintaining fair, orderly, and efficient markets.

Social Security System

A governmental program designed to provide financial assistance to individuals during retirement, and in some cases, upon disability or to surviving family members upon a worker's death.

Transcontinental Railroad

A contiguous network of railroad trackage that crosses a continental landmass with terminals at different seas or ocean borders.

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by increasing the price of imported goods.