Which of the following conditions is true for a nation operating at a point lying inside its production possibilities curve?
a. The nation is experiencing a technological breakthrough in one of its key industries.
b. The nation is clearly utilizing its resources efficiently.
c. The nation is producing the maximum output that can be produced with a limited quantity of resources.
d. The nation is not utilizing its resources efficiently.
e. The nation is producing the maximum output that can be produced with its unlimited quantity of resources.
Question 2
Which of the following would be likely to raise your opportunity cost of attending a big basketball game this Sunday night?
a. A friend calls you up and offers you free tickets to a concert by one of your favorite bands on Sunday night.
b. Your employer offered you double your usual wage to work this Sunday night.
c. Late Friday afternoon, your physics professor makes a surprise announcement that there will be a major exam on Monday morning.
d. All of the above would likely raise the opportunity cost of attending the game.
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