When an Economy Produces at Its Allocatively Efficient Production Point

question 48

Multiple Choice

When an economy produces at its allocatively efficient production point,

• A) resources are not limited.
• B) a society can increase the production of all goods.
• C) scarcity is not a problem.
• D) a society can increase the production of one good only by decreasing the production of some other good that is valued more highly.

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Definitions:

Consensus

A general agreement among members of a group or team, where all individuals support a decision or plan of action.

Critical Thinking

The ability to analyze facts, generate and organize ideas, defend opinions, make comparisons, draw inferences, evaluate arguments, and solve problems.

Formal Logic

The study of reasoning and arguments through a system of rules and principles.

Perceptiveness

the ability to notice or understand things quickly and accurately, especially those that are not obvious.