Asked by Elizabeth Carney on May 10, 2024
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What is TRUE about every point along a production possibilities frontier?
A) Both people are maximizing utility.
B) It is impossible to increase production of either good.
C) All allocations are efficient.
D) It includes some unattainable points.
Production Possibilities Frontier
A curve depicting all maximum output possibilities for two goods, given a set of inputs.
Utility
In economics, it represents a measure of satisfaction or happiness that consumers derive from the consumption of goods and services.
Efficient
The optimal allocation of resources to maximize the production of goods and services without wasting those resources.
- Comprehend the notion of the production possibilities frontier and its significance for production efficiency and the concept of opportunity cost.
- Evaluate the significance of points on, inside, and outside the utility possibilities boundary in the context of efficiency, equity, and realizability.
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Learning Objectives
- Comprehend the notion of the production possibilities frontier and its significance for production efficiency and the concept of opportunity cost.
- Evaluate the significance of points on, inside, and outside the utility possibilities boundary in the context of efficiency, equity, and realizability.
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