The Below Figure Shows the Various Combinations of the Goods

question 25

Multiple Choice

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-"As I add more workers to the factory line, the additional output produced by each additional worker seems to decline. Eventually, the workers just get in each others' way." This statement by a factory supervisor refers to the law of:

• A)comparative advantage.
• B)demand.
• C)supply.
• D)increasing returns to scale.
• E)diminishing marginal returns.

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing the residual value to shareholders after debts and liabilities have been settled.

Efficiency

The ability to accomplish or produce a desired result with the minimum amount of waste, effort, or inefficiency.

Trade-Off

A scenario where one characteristic or element is sacrificed to acquire a different characteristic or element.

Price System

The price system is the mechanism through which prices are determined for goods and services in an economy, facilitating the allocation of resources, signaling what to produce and consume, and coordinating economic activity.