When an Economy Is Operating Under Conditions of Full Employment

question 268

Multiple Choice

When an economy is operating under conditions of full employment, the production of more of commodity A will mean the production of less of commodity B because

• A) of the law of increasing opportunity costs.
• B) economic wants are insatiable.
• C) resources are limited.
• D) resources are specialized and only imperfectly substitutable.

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Definitions:

FUTA Tax Liability

Federal Unemployment Tax Act liability, which denotes the tax employers must pay to fund the federal government's unemployment benefits.

Earnings

The amount of profit that a company produces during a specific period, which is calculated as revenues minus expenses.

Advance Premium

An advance premium refers to payments made by policyholders to insurers, covering future periods of insurance coverage.

Workers' Compensation

Insurance offering medical benefits and compensation for lost wages to employees who get injured while working.