MCQOPTIONS
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| 1. |
Which one of the following statements is true with regard to an economy which is on its production possibility frontier? |
| A. | The economy has to sacrifice some production of one commodity in order to increase the production of another commodity |
| B. | There is no limit or constraint for the economy in the production of goods and services |
| C. | The economy can produce more than one commodity up to a point without reducing the production of any other commodity |
| D. | Its production possibility frontier is an upward sloping curve |
| Answer» B. There is no limit or constraint for the economy in the production of goods and services | |