Question
juan owns a toy company that makes both electric bicycles and gaming consoles. The electric bicycles and gaming consoles use the sane computer chips. Unfortunately, the only factor in the world that makes these computer chips but not enough to continue making both electric bicycles and gaming consoles. Juan chooses to stop making the electric bicycles and to use the remaining computer chips to make only gaming consoles. Juan's decision to use dew computer chips that he has left to make gaming consoles instead of electric bicycles best illustrates which economic concept?
Economic surplus
Production possibilities frontier
Command economy decision making
Distribution of scarce resources
Economic surplus
Production possibilities frontier
Command economy decision making
Distribution of scarce resources
Answers
GPT-4o mini
Juan's decision to discontinue making electric bicycles in order to use the remaining computer chips exclusively for gaming consoles best illustrates the concept of **distribution of scarce resources**. This decision reflects the allocation of limited resources (in this case, computer chips) to different production options based on priorities and market demand. By choosing one product over the other, Juan is making a trade-off that highlights the scarcity of resources and the need to distribute them effectively in a way that maximizes his business potential.