Using Productive Resources to Make Capital Goods Requires That We

question 273

Multiple Choice

Using productive resources to make capital goods requires that we

• A) get everyone to agree on the best use of those resources.
• B) get government approval of our plan to make capital goods.
• C) forgo some level of current consumption.
• D) prove that the existence of the capital goods will not cause any environmental damage.

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Definitions:

Insurance

A financial product designed to protect against the risk of financial losses, both big and small, that result from damage to the insured or property, or liability for damage or injury caused to a third party.

Wealth

The abundance of valuable resources, assets, or material possessions an individual or entity controls.

Utility Function

Describes the relationship between the consumption of goods and the resulting level of satisfaction or utility for an individual.

Chocolate Factory

A manufacturing facility dedicated to the production of chocolate and chocolate-related products.