Which of the following describes a difference between allocative efficiency and productive efficiency in a perfectly competitive market?
A) Allocative efficiency is achieved only in the short run. Productive efficiency is achieved only in the long run.
B) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved in the short run and the long run.
C) Allocative efficiency is achieved in the short run and the long run. Productive efficiency is achieved only in the long run.
D) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved only in the short run.
C
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Which of the following is a drawback to having a common currency across countries, as in the European Union?
A) Having a common currency implies that the prices of goods across countries must always be the same, regardless of consumer preferences for goods across countries. B) A common currency increases barriers to trade across countries, reducing opportunities for economic growth. C) With a common currency, individual countries are no longer able to run independent monetary policies. D) None of the above is a drawback to a common currency.
A single supplier of a good or service for which there is no close substitute is referred to as a(n)
A) strategic competitor. B) monopoly. C) oligopoly. D) monopolistic competitor.
Compute how much each of the following items is worth in terms of today's dollars using 177 as the price index for today
a. In 1926, the CPI was 17.7 and the price of a movie ticket was $0.25. b. In 1932, the CPI was 13.1 and a cook earned $15.00 a week. c. In 1943, the CPI was 17.4 and a gallon of gas cost $0.19.
The rationing function of prices refers to
A. the synchronization of decisions by buyers and sellers that leads to an equilibrium. B. the situation when government must intervene in a market when there is a large shortage or surplus. C. the situation when only the rich get the goods they want. D. the synchronization of decisions by buyers and sellers through the direction of government agencies.