Inefficiency in an Economy Can Be Caused by

question 274

Multiple Choice

Inefficiency in an economy can be caused by

• A)misallocating resources.
• B)underemploying resources.
• C)discrimination.
• D)All of the responses are correct.

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on a loan or investment over a specified period.

Accrued Interest

Interest that has accumulated over a period of time but has not yet been paid.

Premium

An amount paid for an insurance policy, or the price above the normal or nominal cost in financial transactions.

Discount

A reduction from the usual cost of something, often expressed as a percentage off the original price.