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Suppose That a Fully Employed Economy Produces Only Two Goods

Question 74

Multiple Choice

Suppose that a fully employed economy produces only two goods, hamburgers and flat-panel TVs. If the economy is currently producing more than the optimal quantity of hamburgers, then to attain the optimal allocation of resources, it should


A) produce more hamburgers and fewer TVs.
B) produce more TVs and fewer hamburgers.
C) produce more of both goods.
D) produce fewer of both goods.

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