ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Less of another good or goods must be produced.
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There must be a general rise in prices to encourage supply.
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The government must intervene to produce needed products.
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There must be a general fall in the general price level.
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Detailed explanation-1: -When a country’s people and its other resources are fully employed, which of the following must be true before more of any one item can be produced? Private enterprise has to produce it rather than the government.
Detailed explanation-2: -BLS defines full employment as an economy in which the unemployment rate equals the nonaccelerating inflation rate of unemployment (NAIRU), no cyclical unemployment exists, and GDP is at its potential.
Detailed explanation-3: -Each economy functions based on a unique set of conditions and assumptions. Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.
Detailed explanation-4: -What Is Full Employment? Full employment is an economic situation in which all available labor resources are being used in the most efficient way possible. Full employment embodies the highest amount of skilled and unskilled labor that can be employed within an economy at any given time.