If an Economy Is Operating Efficiently and with Full Employment

question 12

Multiple Choice

If an economy is operating efficiently and with full employment, the production of more of one commodity will necessarily lead to less of something else being produced because of:

• A) the unlimited wants of people.
• B) perfectly adaptability of resources in the production of various goods.
• C) scarcity.
• D) the lack of money capital.

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Definitions:

Domestic Investment

This refers to the total amount of money invested within a country's own borders by both private and public sectors.

Foreign-Currency Exchange

The act of exchanging one country's currency for another's, influencing international trade and economic relations.

Exchange Rate

The price of one country's currency in terms of another currency, determining how much foreign currency can be obtained with a certain amount of domestic currency.

Quota

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time period.