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Important information about production possibilities curve
1. When all people use economic reasoning, inefficiency is impossible, because if the benefit of reducing that inefficiency were greater than the cost, the inefficiency would be eliminated. Thus, if people use economic reasoning, it's impossible to be on the interior of a production possibility curve. Is this statement true or false? Why?
2. How does the democratic political system lead politicians to emphasize points outside the production possibility curve?
The absolute value of coefficient of the price elasticity of demand.
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