If the Resources of an Economy Are Being Used Inefficiently

question 34

Multiple Choice

If the resources of an economy are being used inefficiently, it would be

• A) possible to increase production of all goods simultaneously.
• B) possible to increase production of one good only if production decreased for the other goods.
• C) not possible to increase production of any good.
• D) not possible to increase economic growth.
• E) possible to increase production with no effort.

---

Definitions:

Accounts Receivable

Amounts receivable by a firm for goods or services rendered to customers, awaiting payment.

Fixed Asset Investment

The acquisition of long-term physical assets by a company to be used in its operations for generating income.

Depreciated

A decrease in the value of an asset over time, often due to wear and tear or obsolescence, recognized in accounting to allocate the cost of an asset over its useful life.

Salvage Value

The estimated residual value of an asset after it has completed its useful life and cannot be used for production.