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If an Economy Is Operating Inside Its Production Possibilities Curve

Question 129

Multiple Choice

If an economy is operating inside its production possibilities curve for consumer goods and capital goods, it


A) can only produce more consumer goods by producing fewer capital goods.
B) can only produce more capital goods by producing fewer consumer goods.
C) can produce more of both consumer goods and capital goods by using resources that are currently idle.
D) must improve its technology to produce more output.

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