For an economy to produce at a point beyond its production possibilities curve, the economy can:
A. use its current set of resources more efficiently
B. charge lower prices
C. charge higher prices
D. increase its economic resources (over time)
Production Possibility Curve:
A production possibility curve shows the maximum possible output combinations of two goods or services an economy can produce when all resources are employed fully and efficiently.
Answer and Explanation: 1
The answer is d. increase its economic resources because the production possibility curve shows the combination of two goods produced when resources...
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fromChapter 11 / Lesson 28
Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.