Public Policies

question 73

Multiple Choice

Public policies

• A)may be able to improve either economic efficiency or equality.
• B)may be able to improve economic efficiency but cannot improve equality.
• C)may be able to improve equality but cannot improve economic efficiency.
• D)cannot improve either equality or economic efficiency.

Recognize the law of increasing opportunity costs and its graphical representation as a bowed-out PPF.

Identify the economic decisions regarding what, how, and for whom to produce as foundational questions addressed by any economic system.

Understand the impact of technological improvements on production efficiency and the economy's potential output.

Comprehend the role of market forces, represented by Adam Smith's "invisible hand", in allocating resources efficiently.

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Definitions:

Coercion

The practice of persuading someone to do something by using force or threats.

Consumer Contracts Law

The body of law that governs agreements between individuals and businesses selling goods and services to consumers.

Civil Code

A systematic collection of laws designed to deal comprehensively with the core areas of private law such as property, family, and contracts.

Undue Influence

An imbalanced psychological or moral pressure exerted by one person on another, undermining the latter's free will and leading to decisions that benefit the influencer.