If Production in the Economy Is Efficient, Then Changes in Market

question 48

Multiple Choice

If production in the economy is efficient, then changes in market prices

• A) Move us along the perimeter of the production possibilities curve.
• B) Move us to a point above the production possibilities curve.
• C) Move us from a point below the production possibilities curve to a point on the production possibilities curve.
• D) Have no effect on our position on the production possibilities curve.

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Definitions:

Subjective Assessments

Evaluations based on personal feelings, tastes, or opinions rather than on external facts or evidence.

Dominant Ideology

The set of beliefs, values, and norms that are most widely shared within a society, often reinforcing the current social power structure.

Meritocracy

A system or society where individuals are rewarded and advanced based on ability and talent rather than on class privilege or wealth.

Ideology

A system of ideas, beliefs, and values that reflects and supports the interests of a particular group or society.