Discrimination can lead to an inefficient allocation of resources, causing an economy to operate inside its production possibilities curve. This is because discrimination can prevent certain groups from contributing fully to the economy, leading to underutilization of labor and resources.

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Discrimination

Question 195

Multiple Choice

Discrimination

A) affects the distribution of domestic output and income but not its total size.
B) is shown as some point outside of an economy's production possibilities curve.
C) places the economy at some point inside of its production possibilities curve.
D) affects the total size of domestic output and income but not its distribution.

Correct Answer: