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 prices of the most expensive products.

Question

Quizplus · Accepted Answer

If an economy is already fully utilizing its resources, it cannot simply add more resources (such as labor) to produce more of one product. The only way to produce more of one product is to reduce production of another product, thus reallocating resources.

If an Economy Is Fully Utilizing Its Resources,it Can Produce