An Economy's Resources

question 71

Multiple Choice

An economy's resources:

• A)can never be overutilized.
• B)can always be overutilized.
• C)are always fully employed.
• D)can be overutilized, but only temporarily.

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Definitions:

Price

The financial sum necessary for acquiring a good or service.

Willingness to Pay

The utmost expenditure an individual is comfortable making on a good or service, demonstrating the value they attribute to it.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating economic welfare.

Market Price

The present cost at which a good or service can be purchased or sold within a competitive market.