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 TVs and fewer hamburgers.

b. produce more hamburgers and fewer TVs

c. produce more of both goods

d. produce fewer of both goods

Question

Business

Juliet Riddle

1 September, 22:44

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 TVs and fewer hamburgers.

b. produce more hamburgers and fewer TVs

c. produce more of both goods

d. produce fewer of both goods

+5

Answers (1)

Know the Answer?

Shamar Livingston · Answer 1

Letter a is correct. Produce more TVs and fewer hamburgers.

Explanation:

A fully employed economy corresponds to the highest level of utilization of economic productive forces, especially the use of labor forces, that is, all labor can be employed, regardless of qualifications, because the great momentum and economic expansion makes it possible. there is the macroeconomic balance.

For full employment, available natural resources, labor and production goods are all used to meet high demand and balance.

If some demanded good or product is produced in greater quantity than the other, it can lead to an inflation situation that ends up with the necessary macroeconomic balance in full employment.