When an Economy Is Operating with Maximum Efficiency, the Production

question 129

Multiple Choice

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

• A)of the law of decreasing opportunity costs.
• B)material wants are insatiable.
• C)resources are limited.
• D)resources are not specialized and are imperfectly substitutable.

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Definitions:

ANOVA Table

A table that summarizes the results and components of variance from an analysis of variance test.

Null Hypotheses

A statistical hypothesis that assumes no effect or no difference in the case being studied.

Alternative Hypotheses

Hypotheses that are considered to be true if the null hypothesis is found to be false, indicating there is a statistical significance.

Sales

Transactions involving the exchange of goods or services for money, measuring the performance and success of a business.