Our economy ______ operates on its production possibility curve.
A. always
B. usually
C. sometimes
D. never
I'm stuck between B and C.
Here's the text:
"Usually there's some economic slack, but every so often we do manage to operate at peak efficiency. When this happens, we are on our production possibilities frontier (or production possibilities curve)."
Find the one word that is in both your text and your answer choices.
the same word is usually.. but that's under economic slack... I think it's C.. because it says every so often.. which is occasionally = sometimes.
I think you're right.
Good thinking!
To determine the correct answer, let's analyze the information provided in the text.
The text states that "usually there's some economic slack," which implies that the economy does not always operate at its maximum production capacity. This suggests that the economy does not operate on its production possibility curve all the time and eliminates option A.
Additionally, the text mentions that "every so often, we do manage to operate at peak efficiency, and when this happens, we are on our production possibilities frontier (or production possibilities curve)." This implies that there are times when the economy does operate on its production possibility curve. Therefore, the correct answer is option C - sometimes.
By analyzing the context provided, we can understand that while the economy typically operates below its production possibility curve due to economic slack, there are occasional instances when it does operate on its curve during periods of peak efficiency.