If a Nation Uses All of Its Resources to Produce

question 17

Multiple Choice

If a nation uses all of its resources to produce capital goods,that will

• A) force the government to increase its spending
• B) leave the production function unchanged
• C) rapidly increase the profitability of business firms
• D) raise income and capital gains taxes
• E) leave no resources available to produce consumption goods

---

Definitions:

Incremental

Describes gradual, step-by-step changes or improvements over time.

Fixed Quality

Characteristics or features that do not change over time or are considered permanent.

Intelligence

The ability to learn, understand, and apply information, solve problems, and adapt to new situations.

Finnish Classrooms

Educational settings in Finland, noted for their innovative approaches and high standards of teaching and learning.