The production possibilities curve:
A. shows all of those levels of production that are consistent with a stable price level.
B. indicates that any combination of goods lying outside the curve is economically inefficient.
C. is a frontier between all combinations of two goods that can be produced and those
combinations that cannot be produced.
D. shows all of those combinations of two goods that are most preferred by society.
Answer: C
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Government failure
A. Results when government intervention fails to improve market outcomes. B. Occurs whenever the government intervenes in the market. C. Occurs whenever there is market failure. D. Does not occur; only market failure occurs.
In 2013, the average child who was eligible for Medicaid cost the government
A. $4,211. B. $2,807. C. $938. D. more than the average cost of all Medicaid recipients.