Inefficiency exists in an economy when a good is
a. being produced with less than all available resources.
b. not distributed fairly among buyers.
c. not being produced by the lowest-cost producers.
d. being consumed by buyers who value it most highly.
c
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If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff. B) a government license. C) a patent. D) economies of scale.
Marginal cost:
A. is calculated as change in total cost divided by change in total output. B. is calculated as change in total output divided by change in total cost. C. increases then decreases, as output increases, to reflect marginal product. D. None of these is true.
An adverse supply shock generally decreases the price level and the real GDP
a. True b. False Indicate whether the statement is true or false
One likely result of a price ceiling is that
a. an excess supply of the good results b. the price would be above the equilibrium price c. the price would be the equilibrium price d. the good must be rationed e. the supply curve shifts to the right