If All Resources Are Used Efficiently to Produce Goods and Services

question 127

Multiple Choice

If all resources are used efficiently to produce goods and services, a nation will find itself producing

• A)inside its production possibilities frontier
• B)somewhere on its production possibilities frontier
• C)outside of its production possibilities frontier
• D)at one extreme end of its production possibilities frontier
• E)more of one product with no decrease in the production of any other product

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Retained Earnings

The portion of a company's profits that is kept or retained and saved for future use, reinvestment, or to pay debt.

Temporary Investments

Short-term investments in securities such as stocks and bonds, which a company plans to sell within a year.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.