Most Economists in the U

question 113

Multiple Choice

Most economists in the U.S.believe that the price mechanism leads to

• A)an efficient allocation of resources.
• B)an equitable distribution of income.
• C)both an efficient allocation of resources and an equitable distribution of income.
• D)neither an efficient allocation of resources nor an equitable distribution of income.

---

Definitions:

Absolute Advantage

Refers to the ability of a country, individual, or firm to produce a good or service more efficiently than competitors, using fewer resources.

Production Possibility Frontiers

An illustration indicating the peak output capabilities for two items, using certain inputs like resources and additional elements.

Wheat

A cereal grain that is a worldwide staple food, grown in numerous varieties.

Cattle

Large domesticated bovines raised for their milk, meat (beef), or hides.