ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Goods are produced quickly.
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The state of technology is maximized.
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, c) In order to get more of a good, some of another must be given up.
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Goods are distributed equitably.
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Detailed explanation-1: -efficiency. the full employment of resources in production; efficient combinations of output will always be on the PPC. inefficient use (under-utilization) of resources.
Detailed explanation-2: -The PPF represents what an economy can produce when it is using all its resources efficiently. As long as the economy is producing at a point on its PPF, it is producing at an efficient level and using all its resources.
Detailed explanation-3: -Answer and Explanation: The correct answer is c) An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier.
Detailed explanation-4: -Production possibility frontier is drawn on the assumption that the given resources and technology are fully as well as efficiently utilized. so if resources are inefficiently utilized in an economy, it implies that the economy is not maximizing its output with the given resources.