Assuming an Economy Has Fixed Quantities of Resources, That Economy

question 13

Multiple Choice

Assuming an economy has fixed quantities of resources, that economy:

• A)is more efficient, the larger the amount of goods and services it produces.
• B)is able to satisfy all consumer wants.
• C)will produce the same output whether or not resources are used efficiently.
• D)is able to produce the same amount of output regardless of the production technologies it chooses.

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Definitions:

Discount on Bonds Payable

The discrepancy between what a bond is actually worth and the lower price it is sold for.

Bonds Payable

A long-term debt instrument issued by corporations or governments, indicating the amount owed to bondholders, including the terms of interest payments and the maturity date.

Discount on Bonds Payable

The difference between the face value of bonds and their selling price, when the bonds are sold for less than their face value.

Bonds Payable

A financial liability indicating the amount a corporation or government is obliged to pay back to bondholders either upon maturity or over a defined period of time.