If an Economy Is Operating Inefficiently, Then

question 191

Multiple Choice

If an economy is operating inefficiently, then

• A)the economy can increase production of consumption goods without reducing capital goods.
• B)there is always a positive opportunity cost to increasing output.
• C)output can only be increased through capital investment.
• D)output cannot be increased.

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Definitions:

Legitimate Power

A type of power that is recognized and accepted by the society or organization in which it operates, often derived from a formal position or role.

Tacit Power

Unspoken, yet understood authority or influence that individuals or groups may hold, often derived from social positions or relationships.

Legal-Rational Authority

Is typical of modern societies. It derives from respect for the law. Laws specify how a person can achieve office. People generally believe laws are rational. If someone achieves office by following laws, people respect his or her authority.

Pierre Elliott Trudeau

A former Prime Minister of Canada known for his charismatic leadership, implementation of the Official Languages Act, and promotion of Canadian unity.