If a Society's Consumption Possibilities Are Identical to Its Production

question 135

Multiple Choice

If a society's consumption possibilities are identical to its production possibilities,that society has a(n)

• A) closed economy.
• B) open economy.
• C) one-person economy.
• D) absolute advantage in both goods and services.
• E) free trade policy.

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Definitions:

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services at the lowest cost, optimizing welfare or profit.

Consumer Protection

Laws and regulations intended to safeguard buyers of goods and services from unfair, deceptive, or harmful practices by sellers.

Whistle-blower

An individual who exposes illegal, unethical, or wrong practices within an organization to the public or to authorities.

Additives

Substances added to products, such as food or fuel, to enhance their properties or preserve their quality.