In the Production Possibilities Frontier Model,an Unattainable Point Lies

question 279

Multiple Choice

In the production possibilities frontier model,an unattainable point lies

• A) only on the production possibilities frontier itself.
• B) only inside the production possibilities frontier.
• C) only outside the production possibilities frontier.
• D) both on and outside the production possibilities frontier.
• E) There are no unattainable points in the production possibilities model.

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Definitions:

Consumption

Households' utilization of both products and services.

MPS

The marginal propensity to save, which is the fraction of additional income that is saved.

Disposable Income

The fiscal envelope for household spending and saving activity subsequent to income tax adjustments.

Consumption

The purchase and use of goods and services by households, considered a primary component of economic activity and an indicator of the economic health of a nation.