Our economy ______________ operates on its production possibility curve.
A)always
B)sometimes
C)never

Question

Quizplus · Accepted Answer

The economy may not always operate on its production possibility curve because external factors such as natural disasters, political instability, changes in resource availability, or changes in technology can cause shifts in the curve, resulting in the economy operating above or below the curve. Furthermore, decisions made by individuals, businesses, and the government can also affect the position of the production possibility curve. Thus, it is possible for an economy to operate inside or outside the curve, leading to inefficiencies or sustainable economic growth.

Our Economy ______________ Operates on Its Production Possibility Curve