If an Economy Is Operating Efficiently and with Full Employment

question 12

Multiple Choice

If an economy is operating efficiently and with full employment, the production of more of one commodity will necessarily lead to less of something else being produced because of:

• A) the unlimited wants of people.
• B) perfectly adaptability of resources in the production of various goods.
• C) scarcity.
• D) the lack of money capital.

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Definitions:

Total Float

The amount of time that a project task can be delayed without causing a delay to subsequent tasks or the project's completion date.

Net Collection Float

The difference between check deposits recorded in the book balance and the amount of checks that have actually been cleared or credited to the bank account.

Outstanding Cheques

Cheques issued by a company that have not been deposited or cashed by the recipient by the end of the accounting period.

Liquidity

The ease with which an asset can be converted into cash without significantly affecting its price, reflecting the ability of a company or individual to meet immediate and short-term obligations.