Which of the Following Is NOT a Fundamental Objective for the Performance

question 55

Multiple Choice

Which of the following is NOT a fundamental objective for the performance of a country's macroeconomy?

• A)Price stability
• B)Interest rates
• C)Full employment of resources
• D)A reasonable and sustainable balance of payments with the rest of the world

---

Definitions:

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Diminishing Returns

A principle in economics that states as one input variable is incrementally increased, there comes a point when the rate of resultant output begins to decrease.

Variable Inputs

Inputs, such as labor and materials, whose usage changes according to the level of production.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases, leading to a reduction in average cost per unit.