If the Economy Is Producing a Combination of Goods Inside

question 59

Multiple Choice

If the economy is producing a combination of goods inside its production possibilities frontier,then

• A) workers are on vacation
• B) a significant number of workers have little education
• C) some resources are being wasted
• D) technology must improve before output can increase
• E) the opportunity cost of producing more output is greater than the value of the additional output that could be produced

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Definitions:

Clayton Act

An antitrust law in the United States that prohibits certain activities leading to anti-competitiveness, supplementing the Sherman Act.

Labor Unions

Organizations formed by workers to protect their rights and interests, often through collective bargaining with employers.

Robinson-Patman Act

A U.S. law aimed at preventing anticompetitive practices by producers, specifically prohibiting price discrimination that lessens competition.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different buyers, without a justification based on cost differences.