Which of the Following Is True About the Combination of Mops

question 85

Multiple Choice

Which of the following is true about the combination of mops and brooms represented by point E in Figure 1.3 and using PP1?

• A) Point E is efficient now.
• B) Point E is attainable if this economy uses more of its available resources.
• C) Point E is unattainable if this economy becomes more efficient.
• D) Point E is attainable only if more resources become available or technological advances are made. Any point outside the production possibilities curve cannot be attained without growth in resources or better technology.

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Definitions:

Indemnity

A contractual obligation of one party to compensate the loss occurred to the other party due to the acts of the indemnitor or any other party.

Insurance Contracts

Legal agreements between an insurer and the insured, in which the insurer agrees to compensate the insured for loss of property, life, or health, under specified conditions.

Wagering

The act of betting or gambling money on an outcome that is largely subject to chance.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.