If an Economy Cannot Produce More of One Good Without

question 176

Multiple Choice

If an economy cannot produce more of one good without producing less of another good,this implies that which of the following has been achieved?

• A)Allocative efficiency
• B)PPF efficiency
• C)Maximum marginal benefit
• D)Minimum marginal cost
• E)Production efficiency

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Definitions:

Unemployed Workers

Individuals who are capable of working and willing to work but are unable to find suitable employment.

Discretionary Fiscal Policy

Government policy actions, such as changes in taxes and spending, aimed at stabilizing the economy that are initiated at the discretion of the government.

Stagflation

A condition of slow economic growth and relatively high unemployment accompanied by rising prices, or inflation, challenging the usual economic assumptions.

Permanent Income

A theory suggesting that an individual's consumption choices are based on their long-term income expectations rather than their current income.