If an Economy Begins to Use Its Resources More Efficiently

question 190

Multiple Choice

If an economy begins to use its resources more efficiently, it will move

• A) closer to its ppf.
• B) farther away from its ppf.
• C) from a point along its ppf to a point outside its ppf.
• D) from one point to another point along its ppf.

---

Definitions:

Pure Monopoly

A market structure where a single seller controls the entire market for a particular product or service, facing no competition.

Economic Efficiency

A state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Peak-Load Pricing

A pricing strategy used to manage demand by varying prices at different times or days, especially during high-demand periods.

Two-Part Tariff

A pricing strategy that includes a fixed fee plus a variable charge for each unit of the product or service consumed.