Excess Capacity Implies

question 53

Multiple Choice

Excess capacity implies

• A)productive inefficiency.
• B)allocative inefficiency.
• C)productive efficiency.
• D)allocative efficiency.

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Definitions:

Social Security

A government program designed to provide financial support to people who are retired, disabled, or unable to work.

Corporate Sector

The portion of an economy comprised of corporations, including businesses and enterprises, engaged in commercial or industrial activities.

Medicare Tax

A federal payroll tax imposed on both employees and employers to fund Medicare, the United States' health care program for the elderly and some disabled individuals.

Tax Shifting

The process by which the economic burden of a tax is passed from one entity to another, such as from businesses to consumers.