A country's production possibilities boundary shows that
A) when a society combines its resources inefficiently, it cannot produce more of one good without
producing less of the other good.
B) the supply for goods always exceeds the demand.
C) all points inside the boundary are preferred to all points on the boundary.
D) when a society combines its resources efficiently, it is always possible to produce more of all goods.
E) when a society combines its resources efficiently, it cannot produce more of one good without producing
less of the other good.
Answer: D) when a society combines its resources efficiently, it is always possible to produce more of all goods.
You might also like to view...
Exhibit 10A-6 Aggregate demand and supply model
?
?Beginning from a point of short-run equilibrium at point E2 in Exhibit 10A-6, the economy's movement to a new position of long-run equilibrium from that point would best be described as:
A. ?a movement along the AD2 curve caused by a shift in the SRAS1 curve to SRAS2. B. a movement along the SRAS2 curve with a shift in the AD2 curve. C. ?a shift in the LRAS curve to an intersection at E3. D. ? no shift of any kind.
How does scarcity affect the range of possible choices that decision makers face?
A. It narrows the choice to a single option. B. It narrows the range of choices. C. It increases the possible methods for solving problems. D. It clarifies the choices by highlighting the best solutions. E. It simplifies the choices and therefore widens the range.