In the figure above, a point showing an inefficient production point is point
A) A.
B) B.
C) C.
D) D.
D
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When there is a binding price ceiling
A) there is no equilibrium. B) the quantity demanded does not equal the quantity supplied. C) all potential customers are happy because they can buy the good at a lower price. D) producers move production to another country.
The notion that equally situated individuals should be taxed equally is referred to as
a. horizontal equity. b. vertical equity. c. the benefits principle. d. the Gini principle.
The reason that inflation rarely harms workers is that
a. wages rise at the same time prices rise. b. wages fall when prices rise. c. nominal income falls as prices rise. d. the minimum wage rate automatically rises when the price level rises.
When government revenues exceed spending, that is called a
A. balanced budget. B. budget surplus. C. negative surplus. D. budget deficit.