When an Economy Is Operating with Maximum Efficiency, the Production

question 80

Multiple Choice

When an economy is operating with maximum efficiency, the production of more of commodity A will entail the production of less of commodity B because

• A)resources are specialized and are not shiftable.
• B)resources are limited.
• C)the structure of demand is fixed at any point in time.
• D)material wants are insatiable.

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Definitions:

Full Potential

The highest level of performance or achievement that an individual is capable of reaching.

Theory X

A management assumption that employees are inherently lazy and will avoid work if they can, necessitating control and often coercion to achieve organizational goals.

Theory Y

A management approach that assumes employees are inherently motivated and can exercise self-control and self-direction.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, social structures, and culture.