If All the World's Resources Were to Magically Increase One

question 73

Multiple Choice

If all the world's resources were to magically increase one hundredfold, then:

• A)people would still have to make trade-offs.
• B)economics would no longer be relevant.
• C)scarcity would disappear.
• D)trade-offs would become unnecessary.

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Definitions:

Average Total Cost

The total cost of producing a certain quantity of output divided by that quantity, representing the per-unit cost of production.

Economic Losses

Financial losses incurred due to factors such as market fluctuations, business operation inefficiencies, or external events affecting the economy.

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.

Marginal Revenue

The additional income gained from selling one more unit of a good or service.