What is the difference between economic efficiency and equity?
What will be an ideal response?
Economic efficiency is concerned with maximizing the value of output that can be generated by a given resource base while equity deals with the distribution of society's total output among the sectors and individuals of society.
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GDP accounts systematically ignore
A) non-market production. B) illegal and underground production. C) barter trades. D) the market value of services provided by illegal aliens. E) all of the above.
Before the nation's first transcontinental railroad was completed, travelers to the Pacific Coast used which forms of transportation?
a. ship, wagon b. dugout canoe, dirigible c. horse d. All of the above are correct.
Which of the following pricing policies best identifies when a product should be expanded, maintained, or discontinued?
a. full-cost pricing policy b. target-pricing policy c. marginal-pricing policy d. market-share pricing policy e. markup pricing policy
If, under a fixed exchange rate system, the dollar price of a Mexican peso is below its equilibrium level, then the
A) dollar is overvalued. B) peso is overvalued. C) dollar has depreciated. D) peso has appreciated.