The term allocative efficiency refers to
a. the level of output where MC = AVC
b. the equality between MR and MC
c. the production of those goods and services most valued by consumers
d. the point where marginal revenue equals average total cost
e. the production of a good up to the point where AFC = 0
C
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Which of the following has contributed to developing countries' poor economic performance?
A) low population growth B) corruption C) high capital investment D) foreign direct investment
At the equilibrium price
a. only sellers who value the product more than the equilibrium price would be willing to sell b. only buyers who value the product less than the equilibrium price would be willing to buy c. only buyers who value the product more than the equilibrium price would be willing to buy d. None of the parties would be willing to trade
The supply of loanable funds curve
a. is upward sloping b. is downward sloping c. is horizontal d. begins sloping upward, then levels off e. may slope either upward or downward, depending upon the interest rate
The circular flow model shows the relationships between
A. government and business firms. B. government and households. C. households and business firms.