Because of automatic stabilizers, disposable income varies proportionately less than real GDP during periods of economic fluctuations

Under a pure price system, the decision of resource allocation is made by

A) the head of the government. B) a queen or king. C) individuals who own the resources. D) no one.

Production is efficient when

A) it generates a point beyond the production possibility curve. B) the maximum output possible is being produced given current levels of resources and technology. C) technological change occurs. D) the maximum amounts of the most important good are produced.