If an Economy Is Fully Utilizing Its Resources, It Can

question 131

Multiple Choice

If an economy is fully utilizing its resources, it can produce more of one product only if it

• A) doubles manufacturing of the product.
• B) produces less of another product.
• C) adds more people to the labor force.
• D) reduces the price of the most expensive products.

---

Definitions:

Present Value

The present worth of a future sum of money or series of cash flows, when discounted at a specific rate of interest.

Coupon Payment

The interest payment made to the bondholders by the issuer of the bond.

Term to Maturity

Term to Maturity is the remaining time until a debt instrument, such as a bond, reaches its due date and the principal must be repaid.

Debentures

Long-term securities issued by companies to borrow money, often with a fixed rate of interest.