Whenever the Economy Is Producing the Maximum Amount of Goods

question 189

Multiple Choice

Whenever the economy is producing the maximum amount of goods given the level of technology and the amount of resources

• A) the number of resources used should be decreased since society must protect its scarce resources.
• B) the concept of opportunity costs does not exist.
• C) more goods will be available than customers want to buy.
• D) the economy is producing efficiently.

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Definitions:

Purchasing Power Parity

A theory that states that in the absence of transportation and other transaction costs, identical goods should have the same price in different countries when prices are converted into a common currency.

Exchange Rates

The valuation of one currency in the process of being exchanged for another.

Balance Of Payments

A record of all economic transactions during a given period between residents of one country and residents of the rest of the world.

Euros

The eurozone's official currency, adopted by 19 out of the 27 countries in the European Union.