Economic efficiency requires that
a. individuals produce at their maximum level.
b. only long-lasting, high-quality products be produced without regard to cost.
c. income be distributed equally among consumers.
d. all economic activity generating more benefits than costs be undertaken.
D
You might also like to view...
Explain how prices in a competitive market form --- and how they take the place of almost limitless information that a social planner would need if he tried to mimic the market outcome.
What will be an ideal response?
Economists often treat the economy's capital stock as fixed because
A) labor is a more important factor of production than capital, so economists ignore capital. B) it takes a long time for new investment and the scrapping of old capital to affect the overall quantity of capital. C) there is very little capital in the economy compared with the amount of labor. D) unless the interest rate changes, the capital stock doesn't change.
Crowding out results when an increase in government spending leads to declines in consumption, investment, and/or net exports
Indicate whether the statement is true or false
Why is deadweight loss less with the deficiency payment program than with surplus purchasing price support programs?
What will be an ideal response?