In the US Economy, Which of the Following Statements Is TRUE

question 395

Multiple Choice

In the U.S. economy, which of the following statements is TRUE?

• A) More goods are produced than services.
• B) More services are produced than goods.
• C) Production is divided evenly between goods and services.
• D) The economy is too complex to determine the proportion of production that is devoted to producing services.

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Definitions:

Indifference Curve

In economics, a curve that represents different combinations of goods or services among which a consumer is indifferent, showing preferences.

Risk-Free Asset

An investment that is expected to deliver its returns without any risk of financial loss, traditionally government bonds are considered close to risk-free.

Utility

The measure of the welfare or satisfaction of an investor.

Treasury Bills

Short-term government securities issued at a discount from their face value and maturing in one year or less, representing a secure, low-risk investment option.