The Figure Given Below Represents the PPC in Two Nations

question 4

True/False

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-If an economy is operating at a point outside the PPC, either the society has resources that are not being fully used or production is not efficient.

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Definitions:

Investment

Assigning monetary resources with the goal of achieving income or gains.

Corporate Stock

Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.

Inventories

Goods and materials that a business holds for the ultimate goal of resale or processing in the production cycle.

Marginal Efficiency

Marginal efficiency is the rate of return on an investment project or the profitability of investing in additional units of a good or service.