Any combination of two goods that lies beyond the production possibilities frontier
A) is currently impossible to produce.
B) is currently possible to produce, but not worth trying.
C) represents economic waste.
D) represents a more efficient combination of output than anything lying on the frontier.
A
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In order to ensure that borrowers have an ability to repay residential mortgages, the new consumer protection legislation requires lenders to do all of the following EXCEPT
A) verify the income of the borrower. B) verify the borrower's job status. C) check the credit history of the borrower. D) verify that the borrower can read and understand a loan contract.
Newspaper accounts of the U.S. labor market often point out that many people are working more hours than their parents did. What might explain this phenomenon?
A) the substitution effect B) the endowment effect C) bounded rationality D) the income effect