Asked by
Ibrahim Khalil
on Oct 09, 2024
Verified
If an economy is operating inside its production possibilities curve for consumer goods and capital goods,it:
A) can only produce more consumer goods by producing fewer capital goods.
B) can only produce more capital goods by producing fewer consumer goods.
C) can produce more of both consumer goods and capital goods by using resources that are currently idle.
D) must improve its technology to produce more output.
Production Possibilities Curve
A graphical representation that shows the maximum quantity of two goods that can be produced with available resources and technology.
Consumer Goods
Products and services that are consumed by individuals or households to satisfy their needs or wants.
Capital Goods
Items that are used in the production of other goods and services, rather than being bought by consumers.
- Examine the effects of suboptimal resource utilization on the productive capacity of an economy.
- Examine the repercussions of economic prosperity or unemployment scenarios on the production possibilities frontier.
Verified Answer
TF
Learning Objectives
- Examine the effects of suboptimal resource utilization on the productive capacity of an economy.
- Examine the repercussions of economic prosperity or unemployment scenarios on the production possibilities frontier.