-Point D in the Above PPF Figure Is

question 89

Multiple Choice

-Point D in the above PPF figure is

• A) an attainable production combination with unemployed resources.
• B) a tradeoff.
• C) an unattainable production combination.
• D) a production combination that can be attained once resources are fully employed.
• E) More information is needed to determine which of the above answers is correct.

---

Definitions:

Normal Profit Rate

Zero economic profit, providing just the competitive rate of return on the capital (and labor) of owners. An above-normal profit will draw more entry into the market, whereas a below-normal profit will lead to an exit of investors and capital.

Contestable Market

A market where companies can enter and exit freely, with low barriers to entry and exit, leading to competitive prices and efficient outcomes.

Low Entry And Exit

Refers to markets where there are minimal barriers to starting or exiting a business, leading to high levels of competition and innovation.

Highly Contested

Describes a situation, item, or issue that is the subject of intense competition or dispute among parties.