How Do Commodity Chains Begin

question 40

Multiple Choice

How do commodity chains begin?

• A)the extraction and production of raw materials
• B)the manufacture and export of commodities
• C)high wage,semi-skilled assembly of consumer products
• D)the delivery and consumption of finished commodities
• E)none of these

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Definitions:

Allocative Efficiency

Occurs when no resources are wasted; it is not possible to make any person better off without making someone else worse off.

Economic Problem

The challenge of limited resources to meet unlimited wants and needs of society.

Capital Goods

Long-lasting goods purchased or used by businesses to produce goods or services and not intended for final consumption.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.