Suppose That an Economy Produces Only Two Goods: Computers and Movies

question 99

Multiple Choice

Suppose that an economy produces only two goods: computers and movies. If the economy at all times utilizes all its resources, and it decides to use more of its available resources to produce computers,

• A)the production of movies will drop.
• B)the production of both movies and computers will drop.
• C)the production of movies will rise.
• D)the production of movies will not change but the production of computers will increase.
• E)then will be no change in the production of either computers or movies.

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Definitions:

Profit-Sharing Program

A company policy where employees receive a share of the company's profits, typically distributed as bonuses or retirement funds.

Flexible/Medical Savings Account

A type of savings account that allows individuals to set aside pre-tax money for eligible healthcare expenses.

401(k)

A retirement savings plan sponsored by an employer that allows workers to save and invest a piece of their paycheck before taxes are taken out.

Sigmoidoscopy

A medical examination of the lower part of the colon using a flexible tube with a light and camera at the end.