Assuming an Economy Has Fixed Quantities of Resources, That Economy

question 13

Multiple Choice

Assuming an economy has fixed quantities of resources, that economy:

• A)is more efficient, the larger the amount of goods and services it produces.
• B)is able to satisfy all consumer wants.
• C)will produce the same output whether or not resources are used efficiently.
• D)is able to produce the same amount of output regardless of the production technologies it chooses.

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Definitions:

Breakeven Analysis

The calculation to determine the number of products or services a business needs to sell to cover its costs, identifying the point at which revenue equals expenses.

Total Cost

The aggregate sum of all expenses associated with producing a good or providing a service, including fixed and variable costs.

Variable Costs

Expenses that vary directly with the level of production or sales volume.

Production

Use of resources, such as people and machinery, to convert materials into finished goods and services.