If an Economy Is Operating Inside Its Production Possibilities Curve

question 64

Multiple Choice

If an economy is operating inside its production possibilities curve for tanks and bread:

• A)​scarcity does not exist.
• B)​all resources are being used efficiently.
• C)​production of bread can only increase by sacrificing the production of tanks.
• D)​production of bread and tanks can both increase.

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Definitions:

Specific Performance

A legal remedy whereby a court orders the party who breached a contract to perform the promised action rather than merely compensating the other party with money.

Quasi-contract

An obligation imposed by law to prevent unjust enrichment, where the court enforces a contractual obligation on parties who have not agreed to enter into a contract.

Rescission

The legal act of voiding a contract and returning all involved parties to their pre-contractual positions, often due to misrepresentation, fraud, or error.

Compensatory

Referring to a form of damages awarded to a plaintiff in a lawsuit to compensate for lost items, damage, or injury.