In Terms of the Production Possibility Frontier,the Inefficient Use of Available

question 267

Multiple Choice

In terms of the production possibility frontier,the inefficient use of available resources is shown by:

• A) an increase in the labour force growth rate.
• B) a movement from one point to another along the production possibility frontier.
• C) an inward shift of the production possibility frontier due to the lack of opportunity.
• D) production at a point inside the production possibility frontier.

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Definitions:

Parity Ratio

A measure used in agriculture to compare the relative purchasing power of income from farming to a base period.

Prices Received

Prices received refer to the amount of money sellers receive for their goods and services in the market after deducting any sales discounts and allowances.

Prices Paid

The actual amount of money expended by buyers to acquire goods or services.

Price Support Programs

Government interventions to maintain the market price of a commodity or product above its equilibrium level to benefit the producers.