Use the Following to Answer Questions

question 165

Multiple Choice

Use the following to answer questions :
Figure: Strawberries and Submarines II
-(Figure: Strawberries and Submarines II) Look at the figure Strawberries and Submarines II. Suppose the economy is operating at point B. Achieving production at point F would require that the economy:

• A)achieve full employment and an efficient allocation of resources.
• B)reduce its production of strawberries.
• C)reduce its production of submarines.
• D)improve its technology or increase its resources.

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Definitions:

Excess Demand

A scenario in which the current price of a product or service leads to a demand that surpasses its available supply.

Excess Supply

Occurs when the quantity of a good or service offered by producers exceeds the quantity demanded by consumers at the current price.

Excess Supply

A situation where the quantity of a good or service offered for sale by producers exceeds the quantity demanded by consumers at the current price.

Quantity Supplied

The amount of a product that producers are willing and able to sell at a given price over a specified period of time.