Use the Following to Answer Questions

question 184

Multiple Choice

Use the following to answer questions:
Figure: PPF Goods X & Y
-(Figure: PPF Goods X & Y) Refer to the figure. Point A represents an allocation of resources that is:

• A) efficient.
• B) inefficient.
• C) impossible.
• D) the result of trade.

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Definitions:

Positive Economics

A branch of economics that focuses on objective analysis and the description of how the economy functions, as opposed to normative economics that involves value judgments.

Normative Economics

An area of economics that makes assessments of economic fairness or desired economic outcomes and aims of public policy.

Consequences

The outcomes or effects resulting from a particular action or set of conditions.

Negative Relationship

A relationship between two variables, X and Y, in which a decrease in X is associated with an increase in Y and an increase in X is associated with a decrease in Y.