Fill in the blank: a combination of two goods that lies beyond the production possibilities frontier ________.
A) can be produced with the current set of resources
B) cannot be produced with the current set of resources
C) can never be produced with any set of resources
D) can be produced but only if the producer becomes more greedy
Question 2
Refer to the scenario above. Suppose a new legislative policy decreases the fine for speeding to 50. A reduction in the fine to 50:
A) makes it profitable for you to bribe.
B) makes it profitable for Joe to bribe.
C) changes the outcome of the game.
D) will not change your dominant strategy.
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