Generally, If a Nation Produces More Consumer Goods Than Capital

question 211

Multiple Choice

Generally, if a nation produces more consumer goods than capital goods

• A) more of all goods may be produced in the future.
• B) less of all goods may be produced in the future.
• C) about the same amount of capital goods may be produced in the future as are being produced today.
• D) society will have to forego future consumption of capital goods.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, due to higher market prices.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country, often used to protect domestic industries.

Tariff

A tax imposed on imported goods and services to increase their price and reduce competitiveness with domestic products.

Country

A defined geographic area or political unit acknowledged as a sovereign state.