The Attainable Production Points on a Production Possibility Curve Are

question 340

Multiple Choice

The attainable production points on a production possibility curve are

• A) the horizontal and vertical intercepts.
• B) the points along the production possibilities frontier.
• C) the points outside the area enclosed by the production possibilities frontier.
• D) the points along and inside the production possibility frontier.

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Definitions:

Specific Excise Tax

A fixed tax imposed on a specific quantity of a good, regardless of its price, typically applied to items such as alcohol and tobacco.

Unitary

In the context of economics, relates to a system where the central government holds all the power, or a market where a product has a unitary elasticity of demand.

Excise Tax

A tax levied on the manufacture, sale, or consumption of specific goods within a country, such as alcohol, tobacco, and gasoline.

Demand Curves

Graphs that depict the relationship between the price of a product and the quantity of the product that consumers are willing to purchase at that price.