The Economy's Factors of Production Are Not Equally Suitable for Producing

question 78

Multiple Choice

The economy's factors of production are not equally suitable for producing different types of goods. This principle generates:

• A) economic growth.
• B) technical efficiency.
• C) resource underutilization.
• D) the law of increasing opportunity cost.

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Definitions:

Rejection Reference Group

A social group whose norms, values, or behaviors are actively rejected or avoided by an individual.

Negative Externality

A cost that is suffered by a third party as a consequence of an economic transaction.

Extravagant Consumption

The act of spending on luxury and expensive goods and services in excess of one's basic needs, often as a display of wealth.

Affluent Professionals

Individuals with high income and educational levels, often working in professions that require advanced degrees.