The Figure Given Below Represents the Production Possibilities Curve for Goods

question 45

Multiple Choice

The figure given below represents the production possibilities curve for goods and services in an economy. Figure 2.3 Refer to Figure 2.3.The movement from Curve X to Curve Y indicates:

• A)contraction in the production of goods.
• B)contraction in the production of services.
• C)expansion in the ability to produce both goods and services.
• D)expansion in the ability to produce goods.
• E)expansion in the ability to produce services.

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Definitions:

International Business Activity

This term describes the trade, investments, and operations a company conducts across national borders.

Cell Phones

Portable electronic devices that enable users to make voice calls, send text messages, and access various multimedia and internet services.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

More Efficiently

implies improving productivity or performance using fewer resources or achieving better outcomes in a shorter time frame.