Resources are allocated efficiently when
A. economic profits are zero.
B. the market produces what people want.
C. output is distributed in an equitable fashion.
D. output is produced in a sustainable fashion.
Answer: B
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Which of the following is a characteristic of stock?
A) Stock represents ownership in a firm B) Stock represents a promise to repay a fixed amount of funds. C) The face value or principal plus interest is repaid at a specified period of time. D) The length of coupon payments is fixed by the stated maturity period.
Which of the following is not a way by which price-discriminating firms can segment a market?
A) on the basis of the supplier's marginal cost of production, for example requiring customers to pay a premium for customizing options B) on basis of the buyer's location, for example requiring out-of-state students to pay higher tuition C) on the basis of time of purchase, for example long-distance calling D) by requiring an advance purchase, for example airline tickets
Suppose that one-year Treasury bills yield 4 percent in the United States and 5 percent in Germany. Investors will be indifferent between them if they expect the dollar over the next year to
A) depreciate against the euro by approximately 1 percent. B) appreciate against the euro by approximately 1 percent. C) depreciate against the euro by exactly 20 percent. D) appreciate against the euro by exactly 20 percent.
Incentive-based regulations tend to be more efficient than command-and-control regulations
a. True b. False Indicate whether the statement is true or false