Suppose That a Fully Employed Economy Produces Only Two Goods

question 15

Multiple Choice

Suppose that a fully employed economy produces only two goods, hamburgers and flat-panel TVs.If the economy is currently producing more than the optimal quantity of hamburgers, then to attain the optimal allocation of resources, it should

• A)produce more hamburgers and fewer TVs.
• B)produce more TVs and fewer hamburgers.
• C)produce more of both goods.
• D)produce fewer of both goods.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, designed to harmonize the law of sales and other commercial contracts.

Convention on Contracts for International Sale of Goods

An international treaty that establishes a uniform framework for the law governing the international sale of goods.

Contract Contains

The provision, clauses, and terms encapsulated within a legally binding agreement.

Risk of Loss

The possibility that an asset might be lost, damaged, or diminished in value, often leading to discussions about which party bears this risk in transactions.