Production Possibilities (Alternatives) Refer to the Above Table

question 40

Multiple Choice

Production possibilities (alternatives) Refer to the above table.For this economy to produce a total output of 3 units of capital goods and 13 units of consumer goods it must:

• A)achieve economic growth.
• B)use its resources more efficiently than the data in the table now indicate.
• C)allocate its available resources most efficiently among alternative uses.
• D)achieve the full employment of available resources.

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Definitions:

Circular-Flow Diagram

An economic diagram that maps out the journey of money as it passes through markets, involving both households and businesses.

Household

An economic unit consisting of all the individuals who live together in one housing arrangement.

Market

A venue or mechanism through which buyers and sellers interact to trade goods, services, or securities.

Business

An economic system where goods and services are exchanged for one another or for money, on the basis of their perceived value.