If the economy of the country is operating at X,... | JAMB UTME - Economics - 1994

Question 1 Report

If the economy of the country is operating at X, the implication is that

the productive capacity is being fully utilized

the productive capacity is not being fully utilized

too little of consumer goods is being produced

there is a disequilibrium between the production of capital and consumer goods

Answer Details

If the economy of a country is operating at X, it means that the productive capacity of the economy is being fully utilized. In other words, the economy is producing goods and services at its maximum potential with the available resources, such as labor, capital, and natural resources. This indicates that there is no excess capacity in the economy, and firms are producing at their most efficient levels to meet the demand for goods and services in the market. Therefore, is the correct implication.

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Methods And Tools Of Economic Analysis

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If the economy of the country is operating at X, the implication is that

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