When Resources Are Being Used Wastefully or Inefficiently, the

question 57

Multiple Choice

When resources are being used wastefully or inefficiently, the

• A) production possibilities curve shifts inward.
• B) production possibilities curve shifts outward.
• C) economy is operating at a point inside its production possibilities constraint.
• D) economy is operating at a point outside its production possibilities constraint.

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Definitions:

Gini Ratio

An indicator of how income is distributed across a population, varying from 0 for total equality to 1 for absolute inequality.

Income Inequality

The disparity in income distribution across a group, causing variations in wealth and standards of living.

Lorenz Curve

A graphical representation used to show the distribution of income or wealth within a society, indicating the degree of inequality.

Venezuela

A country located on the northern coast of South America, known for its significant oil reserves and economic challenges.