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A Typical Economy Produces Thousands of Different Goods

Question 77

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A typical economy produces thousands of different goods.Is it accurate to say that society faces a production possibilities frontier?


A) No, because two dimensions cannot capture the complexity of a full economy.
B) No, although a graph with several thousand dimensions would be appropriate.
C) Yes, although society does not face opportunity cost and the model does not apply.
D) Yes, because scarcity always imposes opportunity costs.
E) Uncertain, economic theory has no answer to this question.

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