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Economic Discrimination Puts the Economy Inside Its Production Possibilities Curve

Question 120

Multiple Choice

Economic discrimination puts the economy inside its production possibilities curve because discrimination


A) redistributes income from low-paid to high-paid persons.
B) promotes present consumption rather than production of capital goods.
C) arbitrarily blocks women and certain minorities from higher-productivity, higher-wage jobs and thus keeps the economy from producing its maximum output.
D) often causes inflation, which reduces the nation's real output.

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