If an economy is fully utilizing its resources, it can produce more of one product only if it:
A) adds more people to the labor force.
B) doubles manufacturing of the product.
C) produces less of another product.
D) reduces the prices of the most expensive products.

Question

Quizplus · Accepted Answer

If an economy is fully utilizing its resources, it means that it is already producing the maximum output possible given its current resources and technology. In order to produce more of one product, it would have to reallocate some of those resources away from producing other goods and services. Therefore, it would have to produce less of another product in order to increase output of a specific product.

If an Economy Is Fully Utilizing Its Resources, It Can