The production possibilities frontier demonstrates the basic economic principle that:
A) market-based economies are more efficient.
B) supply will determine demand in the economy.
C) the production of more capital goods this year will cause the economy to produce fewer consumption goods next year.
D) to produce more of any one thing, assuming full employment, the economy must produce less of something else.
E) to produce more consumption goods this year requires the production of more capital goods this year.
Correct Answer:
Verified
Q26: Narrbegin Exhibit 2.2 Production possibilities frontier
Q33: A point outside a production possibilities curve
Q34: Exhibit 2-2 Production possibilities frontier

Q35: Exhibit 2-2 Production possibilities frontier

Q35: Inefficient production occurs:
A) at any point inside
Q36: The production possibilities frontier illustrates all of
Q37: The production possibilities frontier shows different combinations
Q41: Exhibit 2-6 Production possibilities frontier data
Q43: The production possibility curve is bowed outward
Q48: Narrbegin Exhibit 2.3 Production possibilities curve
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