Suppose Congress Consists of 5 People Who Want to Spend

question 28

Multiple Choice

Suppose Congress consists of 5 people who want to spend X% on national defense. Let their preferences be as follows: 1, 3, 20, 21, 25. What amount will most likely be spent?

• A)14
• B)20
• C)3
• D)21

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Definitions:

Unemployed Resources

Assets, labor, or capital that are available but not currently being used in the production of goods or services.

Production Possibilities Frontier

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Technological Improvement

Technological Improvement refers to advancements in technology that increase productivity and efficiency in the production of goods and services.

Inefficient Production

The process of producing goods or services in a way that uses more resources or takes more time than necessary, leading to wasted potential outputs.