Lauren Owns a Bakery

question 124

Multiple Choice

Lauren owns a bakery.She wants to increase her daily production of baked goods,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the physical capital resource at her bakery?

• A) moving into a larger space
• B) increasing employee training
• C) hiring more employees
• D) buying better-quality ingredients
• E) hiring an accountant to handle payroll

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Definitions:

Substitution

The act of replacing one item with another, often referring to the economic principle where consumers switch between similar goods in response to changes in price or income.

Indifference Curve

A graph representing combinations of two goods between which a consumer is indifferent, showing preferences and trade-offs.

Total Utility

The total satisfaction received from consuming a certain amount of a good or service.

Equilibrium Position

A situation where the supply and demand in the market are equal, leading to stable prices.