When an Economy Is Operating Efficiently, Which Is True

question 80

Multiple Choice

When an economy is operating efficiently, which is true?

• A) All resources are fully employed.
• B) It would be possible to increase the output of 1 good without decreasing the output of the other.
• C) Resources are not fully employed or current technology is not being fully utilized.
• D) This economy is operating to the right of its production possibilities curve (PPC).

---

Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus due to repeated association with an unconditioned stimulus.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without previous conditioning or learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.