Figure 2-4 -Refer to Figure 2-4.This Economy Cannot Currently Produce 30 Notepads

question 519

Multiple Choice

Figure 2-4

-Refer to Figure 2-4.This economy cannot currently produce 30 notepads and 45 lamps because

• A) some of its resources are unemployed.
• B) inefficiencies exist in this economy's production process.
• C) given its current technology, it does not have the resources to produce that level of output.
• D) All of the above are correct.

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Definitions:

Base-Rate Information

Statistical information that indicates how common a particular trait, behavior, or characteristic is within a given population or context.

Availability Heuristic

A cognitive bias that causes people to overestimate the importance of information that is readily available to them.

Illusory Correlations

The belief in a connection between two factors when, in reality, no such connection is present.

Phonemes

The minimal sound component in a language that differentiates one word from another.