-The Above Figure Shows the PPF for a Country That

question 282

Multiple Choice

-The above figure shows the PPF for a country that produces computers and computer factories.The nation's production possibilities frontier is PPF?.At which of the following production points would the economy grow most rapidly?

• A) Point A
• B) Point B
• C) Point C
• D) It makes no difference among the three points because they are all production efficient.
• E) More information is needed to answer the question.

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Definitions:

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.

Cost

The amount of money, time, and resources associated with producing or acquiring goods and services.

Producer Surplus

The difference between what producers are willing to sell a good for and the price they actually receive, reflecting their benefit.

Equilibrium Market Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.