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.

Question

latasha gascoigne · Accepted Answer

Final Answer : C, Explanation :  Economic discrimination, such as blocking women and certain minorities from higher-productivity, higher-wage jobs, prevents the economy from utilizing all of its available resources efficiently. This underutilization means the economy operates inside its production possibilities curve, not achieving its maximum potential output.

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