When an Economy Is Operating with Maximum Efficiency, the Production

question 129

Multiple Choice

When an economy is operating with maximum efficiency, the production of more of commodity A will mean the production of less of commodity B because:

• A)of the law of decreasing opportunity costs.
• B)material wants are insatiable.
• C)resources are limited.
• D)resources are not specialized and are imperfectly substitutable.

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Definitions:

Investment in Human Capital

Refers to the process of improving the workforce's skills, knowledge, and abilities through education, training, and health interventions to enhance productivity and economic growth.

Worker Productivity

The measurement of the efficiency of a worker or group of workers in converting inputs into useful outputs.

Annual Earnings

The total amount of income earned over the course of a year from employment and other sources.

Geographic Imobility

The hindrance or inability of labor forces to move from one region to another in pursuit of job opportunities.