Which of the following occurs when goods in a market are being produced and sold at the lowest possible average cost?
a. Productive efficiency
b. Monopolistic competition
c. Allocative efficiency
d. Perfect competition
a. Productive efficiency
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In most cases, the fact that one of the market curves is perfectly inelastic is not sufficient to conclude that a per-unit tax in that market is efficient. A tax on land rents is an exception. Can you explain why?
What will be an ideal response?
Which of the following is an example of spending on goods and services in the circular flow model?
A) Belinda purchases a new computer for her tax-preparation business. B) Timmy purchases a new examination table for use in his veterinary clinic. C) Celeste buys fresh herbs at the farmers' market to use in her restaurant. D) Javier buys 800 square feet of wood flooring for his vacation home.
When maximizing economic growth is a country's goal it:
A. may work in opposition to the country's happiness in terms of satisfaction gained from leisure. B. increases the correlation to the country's happiness, because more money makes people happier. C. creates a perfect correlation to happiness, if the money is allocated fairly. D. everyone in the economy will be better off if it obtains its goal.
Refer to the graph shown. What will reduce the trade deficit?
A. The SAS curve shifts down. B. The WAS curve shifts up. C. The AD curve shifts to the left. D. All the answers are correct.