If All the World's Resources Were to Magically Increase One

question 73

Multiple Choice

If all the world's resources were to magically increase one hundredfold, then:

• A)people would still have to make trade-offs.
• B)economics would no longer be relevant.
• C)scarcity would disappear.
• D)trade-offs would become unnecessary.

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Definitions:

Bottleneck Operations

Stages in the production process that limit the overall output because they have a lower capacity compared to other stages.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Constrained Resources

Resources that limit the company's ability to produce goods or services, often resulting in bottlenecks in the production process.

Opportunity Cost

The benefit, profit, or value of something that must be given up to acquire or achieve something else.