If a Factor of Production Can Be Used to Produce

question 4

Multiple Choice

If a factor of production can be used to produce either good A or good B,then A and B are

• A)substitutes in production.
• B)complements in production.
• C)substitutes.
• D)complements.
• E)normal goods.

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Definitions:

Surplus Supply

A situation where the quantity of a good or service supplied in a market exceeds the quantity demanded at the current price.

Soviet Union

A former federation of communist states in Eastern Europe and Northern Asia, existing from 1922 until its dissolution in 1991, known officially as the Union of Soviet Socialist Republics (USSR).

Price Signals

Indicators that arise from the fluctuation of prices in a market, guiding economic decisions and resource allocation.

Circular Flow Diagram

An illustration showing the flow of resources from households to firms and of products from firms to households. These flows are accompanied by reverse flows of money from firms to households and from households to firms.