The production possibilities frontier model shows that A) if ...

[cherise1989]

The production possibilities frontier model shows that
 
  A) if all resources are fully and efficiently utilized, more of one good can be produced only by producing less of another good.
  B) a market economy is more efficient in producing goods and services than is a centrally planned economy.
  C) economic growth can only be achieved by free market economies.
  D) if consumers decide to buy more of a product, its price will increase.

Question 2

What are correct incentives designed to eliminate?
 
  What will be an ideal response?

[TINA]

Answer to Question 1

A

Answer to Question 2

Correct incentive design can improve the selection mechanism along with reducing the moral hazard problem.