1. Which of the following best illustrates a payment for a service a. $15,000 for a...

1. Which of the following best illustrates a payment for a service

a. $15,000 for a new automobile

b. $1.95 for a hamburger

c. $200.00 for a mechanic to fix your automobile

2. When a nation's resources are fully employed with maximum efficiency, additional machinery

a. can be produced, but only if by large industries

b. cannot be produced under any circumstance

c. can be produced, but only if the production of something else is reduced

Expert Solution

Ques1: Option C is correct. Repairing charges paid to mechanic is a payment for a service as he is providing his technical expertise which is intangible in nature

Ques2: Option C is correct. Since resources are fully employed and maximum efficiency and therefore additional machinery can be produced by reducing the quantity of some other good.

Rahul Sunny answered 2 years ago

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