Which of the Following Statements Is Not True Regarding the Production

question 75

Multiple Choice

Which of the following statements is not true regarding the production function and the production possibilities curve?

• A) Both the production function and the production possibilities curve maximize the amount of output attainable.
• B) The production function describes the capacity of a single firm, whereas the production function summarizes the output capacity of the entire economy.
• C) A production function tells us the maximum amount of output attainable from the use of all resources.
• D) The production possibilities curve expresses the ability to produce various combinations of goods given the use of all resources.

---

Definitions:

Private Law

The area of law that deals with relationships between individuals or institutions, often involving private contracts and disputes.

Public Law

The body of law that governs relationships between individuals and the government, including constitutional, administrative, and criminal laws.

Legal Remedy

The means by which a court of law enforces a right, imposes a penalty, or makes some other court order to impose its will.

Business Organization

An entity formed with the purpose of conducting commercial activities, such as corporations, partnerships, and sole proprietorships.