A Computer Is Labeled "American-Made," but in Fact Many of Its

question 13

Multiple Choice

A computer is labeled "American-made," but in fact many of its components were made and assembled abroad, but it is boxed and labeled in the United States.This type of production is characteristic of

• A)continuous process technology.
• B)small batch production.
• C)mini-mills.
• D)a "pay-for-knowledge" plan.
• E)hollow corporations.

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Definitions:

Maximum Efficiency

The optimal use of resources to achieve the best possible output or outcome without wasting any resources.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical or involuntary unemployment.

Decreasing Opportunity Costs

A situation in which the opportunity costs of resources decrease as the production of one good increases, often due to factors like improved technology or specialization.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen, representing the value of the best missed opportunity.