Allocative efficiency is achieved when
A) firms produce the goods and services that consumers value most.
B) firms produce goods and services at the lowest cost.
C) there are no shortages or surpluses in the market.
D) goods and services are fairly distributed among consumers in an economy.
A
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The benefit that Jack receives from consuming a pack of french fries is 10 utils. He expects a future health cost of eating french fries at 20 utils
If Jack discounts delayed utils with a weight of 1/4, should he consume french fries? Explain your answer.
How will firms react when they discover that their actual investment is less than their intended investment? How will their reaction affect equilibrium national income?
Increased uncertainty and pessimism about the future of the economy lead firms to desire less investment spending which shifts the aggregate-demand curve to the left
a. True b. False Indicate whether the statement is true or false
Microsoft has just taken some senators out to dinner in Paris in a private jet. This is probably an example of an attempt to influence:
A. social forces. B. political forces. C. economic forces. D. the price mechanism.