When Society Must Decrease the Production of Something in Order

question 99

Multiple Choice

When society must decrease the production of something in order to produce more of another good or service,society has necessarily achieved

• A) only production efficiency.
• B) only allocative efficiency.
• C) both production efficiency and allocative efficiency.
• D) a free lunch.
• E) the maximum opportunity cost..

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Definitions:

Interest

The expense associated with taking out a loan, usually shown as a percentage of the total amount loaned.

Interest Earned

The amount of interest generated from an investment or savings over a certain period of time.

Account

A record or statement of financial expenditure and receipts relating to a specific period or purpose; also used to refer to a customer's relationship with a financial institution.

Simple Interest

Interest computed solely on the initial amount invested, excluding any previously earned interest.