If society can produce more of one good but must forgo some of another good to do so, it is definitely achieving
A) both production and allocative efficiency.
B) only production efficiency.
C) only allocative efficiency.
D) neither production nor allocative efficiency.
E) None of the above answers is correct because when society must forgo another good to produce more of one good, then society might be production efficient or it might be allocatively efficient.
B
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Which of the following statements about the GDP gap is not true?
a. It widens during recessions and narrows down during expansions. b. When an economy's GDP gap equals zero, it operates on its production possibilities curve. c. It is a measure of output lost as a result of unemployment. d. There are more goods and services available in an economy as its GDP gap widens. e. It is equal to potential real GDP minus actual real GDP.
The GATT was
a. formed shortly after World War II b. authorized in the American Constitution c. formed in 1994 d. formed in 1876 e. formed to unify the European continent
By raising aggregate demand more than anticipated, policymakers
a. reduce unemployment for awhile. b. raise unemployment for awhile. c. reduce unemployment permanently. d. None of the above is correct.
A firm's marginal product of capital is twice its marginal product of labor; the price of labor is $6, and the price of capital is $3. Is the firm minimizing cost? If not, how can it reduce its cost? Explain.
What will be an ideal response?