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.