What is the efficiency factor?
What will be an ideal response?
This factor means resources are used in the least costly way (productive efficiency) and are used to produce the mix of products most wanted by society (allocation efficiency).
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Country X and Country Y are two neighboring countries which are experiencing recession. The government of Country X reduced its expenditure during the recession while Country Y's government increased the supply of money in the economy
Which of the two policies will help the economy to recover from the recession?
When the additional satisfaction from a good declines as more of it is consumed, this illustrates the law of:
a) Exceptional marginal utility. b) Diminishing marginal utility. c) Declining demand. d) Increasing opportunity costs.
Which of the following is the most likely explanation of the productivity slowdown that began in 2010?
A. High inflation levels disrupted resource allocation. B. High debt levels discouraged productive investments. C. The Federal Reserve lowered interest rates too much in response to the Great Recession. D. Productive capacity fell dramatically during the Great Recession.
Oligopolistic industries are characterized by a
A) few large firms and no barriers to entry. B) large number of firms and no barriers to entry. C) few large firms and substantial barriers to entry. D) large number of firms and substantial barriers to entry.