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.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Immediate Effect

The instant impact or outcome that follows a specific action or decision, without significant delay.

Price Floor

A government- or authority-imposed minimum price that can be charged for a good or service, intended to prevent prices from falling too low.

Market Price

The actual selling price of a good or service in the marketplace, determined by supply and demand dynamics at any given time.