Describe the cost of discrimination to society. How is the cost of discrimination illustrated in a production possibilities curve?
What will be an ideal response?
Discrimination has private and social costs. It transfers income and benefits from one group to another. It also reduces the output and income of the economy by operating as an artificial barrier to competition. In a production possibilities model, discrimination can be pictured as a point inside the production possibilities frontier. The society has not achieved productive efficiency.
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As a curve approaches a maximum point, the slope will
A) be positive, then negative after the maximum point. B) be negative, then positive after the maximum point. C) remain constant on either side of the maximum point. D) increase before and after the maximum point.
When the absolute percentage change in quantity demanded is just equal to the percentage change in price, demand is
A) elastic. B) perfectly inelastic. C) unit-elastic. D) relatively inelastic.
Use the following table to answer the question below. Jane's Production Possibilities SchedulePounds of Green BeansPounds of Corn08020604040602080 0If Jane produces 40 pounds of green beans, she can produce ________ pounds of corn.
A. 40 B. 60 C. 0 D. 20
Which of the following displays these two characteristics: nonrivalry and nonexcludability in consumption?
A) public goods B) private goods C) quasi-public goods D) common resources