A Point on a Production Possibilities Curve Indicates

question 322

Multiple Choice

A point on a production possibilities curve indicates

• A) resources are not being used efficiently.
• B) resources are being used efficiently.
• C) opportunity costs are constant.
• D) an output combination that can be attained only if society gets more resources or there is technological change.

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Definitions:

Business Cycles

The fluctuations in economic activity that an economy experiences over a period of time, characterized by periods of boom and recession.

Great Recession

A global economic downturn that occurred from late 2007 through 2009, marked by severe financial crises, including the collapse of the housing market in the United States.

Peak

The highest point between the end of an economic expansion and the start of a contraction in a business cycle.

Unemployment

The condition of being without a job while actively looking for employment and being willing to work.