The Production Possibilities Curve Demonstrates the Basic Economic Principle That

question 173

Multiple Choice

The production possibilities curve demonstrates the basic economic principle that:

• A) market-based economies are more efficient.
• B) supply will determine demand in the economy.
• C) the production of more capital goods this year will cause the economy to produce less consumption goods next year.
• D) to produce more of any one thing, assuming full employment, the economy must produce less of something else.
• E) to produce more consumption goods this year requires the production of more capital goods this year.

Recognize the impact of firm-specific events on stock investments and the importance of diversification.

Identify key figures and concepts in the development of classical conditioning.

Understand the basic procedure of classical conditioning experiments.

Recognize the characteristics of behaviorism and its influence on the understanding of learning and behavior.

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Definitions:

Agents

An intermediary who brings buyers and sellers together and facilitates the exchange.

Brokers

An intermediary who represents clients who buy or sell specialized goods or seasonal products.

Wholesalers

An intermediary who buys products in bulk from producers and resells them to other wholesalers or to retailers.

Retailers

An intermediary who sells products to the ultimate consumer.