Allocative efficiency is achieved when firms produce goods and services
A) that consumers value most. B) at a marginal cost of zero.
C) at the lowest possible cost. D) at the lowest opportunity cost.
A
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Figure 3-4
Which of the following would make point Q in Figure 3-4 attainable?
A. Full-employment policies B. A technological advance strictly applicable to the production of apples C. An increase in land available for agricultural use D. A transfer of available resources from apples to wheat production
Which of the following does NOT cause a rightward shift in the supply curve?
A) a reduction in resource costs B) an increase in technology C) a reduction in the price of the good D) a reduction in the expected future price of the good
Playing the equilibrium of a one-stage game over and over again when the one-stage game is repeated is:
B. only a Nash equilibrium if the game is finite. C. only a Nash equilibrium if the game is infinite. D. dominated in some cases.
According to rational expectations theory, which of the following is the best approach to lower the inflation rate?
a. Preannounced stable government policies. b. Unpredictable government policies. c. First predictable and then unpredictable government policies. d. None of these.