Inefficient allocation of resources occurs when
A. no one can be made better off without having someone else give up something.
B. it is possible to make some people better off without making others worse off.
C. society is operating at a point high on the production possibilities frontier.
D. society is operating at a point low on the production possibilities frontier.
Answer: B
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A perfectly competitive firm's economic profit is maximized by producing the amount of output such that
A) total revenue equals total variable cost. B) marginal revenue equals marginal cost. C) total revenue equals total cost. D) marginal revenue is equal to total revenue.
In the above figure, if the minimum wage is equal to ________, there would be ________ hours of labor employed
A) $8 per hour; 4,000 B) $8 per hour; 2,000 C) $6 per hour; 3,000 D) $4 per hour; 2,000
Explain the differences between total revenue, average revenue, and marginal revenue
What will be an ideal response?
If a monopolist wants to increase the amount it sells, it
A) will keep the price the same. B) must lower the price on all units. C) must accept lower profits. D) must lower the cost of production.