The Great Economic Problem Is To

question 248

Multiple Choice

The great economic problem is to:

• A) increase resources to satisfy as many of our limited wants as possible.
• B) equally allocate resources in order to satisfy as many of our limited wants as possible.
• C) create unlimited resources to satisfy as many of our infinite wants as possible.
• D) arrange our limited resources to satisfy as many of our infinite wants as possible.

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Definitions:

Marginal Cost Function

The relationship that shows the change in total production cost when producing one additional unit of a good or service.

Market Output

The total quantity of goods and services produced and supplied in a market at a given time.

Carpet Cleaning

The removal of dirt, stains, allergens, and other contaminants from carpets through various cleaning methods to maintain appearance and hygiene.

Long-run Cost Function

Describes the relationship between output and the cost of production when all inputs, including capital, are variable.