An Economy Is Efficient If It Is

question 100

Multiple Choice

An economy is efficient if it is:

• A)possible to produce more of all goods and services.
• B)possible to produce more of one good without producing less of another.
• C)not possible to produce more of one good without producing less of another good.
• D)producing a combination of goods.

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Definitions:

Horizontal Axis

In a graph, the x-axis along which numerical values are plotted, typically representing a variable like time or quantity.

Budget Line

A graphical representation of all the possible combinations of two goods that can be purchased with a given income and prices.

Income Decreases

A situation where an individual's, household's, or country's income lowers over a period.

$20 Per Month

A fixed sum of money that is paid or received every month, often used in financial agreements or subscriptions.