If an Economy Is Operating at a Point Inside the Production

question 81

Multiple Choice

If an economy is operating at a point inside the production possibilities frontier, then

• A)some of the nation's resources are unemployed
• B)the production decisions are made by the government
• C)unlimited resources must satisfy scarce desires
• D)there is a scarcity of human resources relative to human wants therefore society must have some mechanism for making choices
• E)society is paying too much for wages

---

Definitions:

Face Value

The nominal or original value of a security or financial instrument as stated by the issuer, not including interest or dividends.

Principal

The initial amount of money borrowed or invested, excluding any interest or dividend.

Interest

The fee charged for borrowing money, often expressed as a percentage of the principal amount.

Maturity Date

The specified date on which the final payment of a loan or other financial instrument is due to be paid.