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sargam bambal
on Dec 11, 2024

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Which of the following most accurately indicates the implications of an economy's production possibilities curve?

A) If all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
B) If all the resources of an economy are being used efficiently, it is generally possible to produce more of one good without having to sacrifice the production of other goods.
C) Over time, it is generally impossible for a country to expand its production of goods.
D) An economy will automatically move toward a point that lies outside of the production possibilities curve unless proper government policy constrains production.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.

Resources

Inputs or factors used in the production of goods and services, including labor, capital, land, and technology.

Efficiently

Performing or functioning in the best possible manner with the least waste of time and effort.

  • Study the fiscal impact of selections and trade-offs in the realm of microeconomics and macroeconomics.
  • Perceive the criticality of effective versus ineffective points on the PPC and their influence on the prospects of economic proliferation.
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Kamaria WilliamsDec 12, 2024
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