Refer to the Chart Above

question 37

Multiple Choice

Refer to the chart above.At what point,measured in terms of the net cost of information,does information overload begin?

• A) 0
• B) 5
• C) 10
• D) 12

---

Definitions:

Potential Output

The maximum amount of goods and services an economy can produce when it uses its resources fully and efficiently, without causing inflation.

Net Taxes

The total taxes paid to the government minus transfer payments and subsidies received from the government.

Aggregate Demand

The total quantity of goods and services demanded across all levels of an economy at a given price level and in a given time period.

Potential Output

The peak level of real GDP that can be maintained in the long run without causing inflation to rise.