In a perfectly competitive market, producers efficiently use their scarce resources to produce what consumers want and as a result they achieve:
a. productive efficiency
b. allocative efficiency.
c. economic efficiency.
d. constant returns of scale.
b
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The long-run aggregate supply curve of an economy corresponds to
A) a point inside the production possibilities curve. B) a point outside the production possibilities curve. C) a point on the production possibilities curve. D) none of the above: there is no relationship between the long-run aggregate supply curve and the production possibilities curve.
Is this outcome efficient?
a. Yes because both of them are maximizing their payoffs b. No, because both of them can do better than their current equilibrium c. No, because cheating is goodNo, because cheating is good d. All of the above
The term "balance of payments" refers to a nation's:
a. goods exports minus imports. b. record of all international transactions. c. capital inflows minus outflows. d. official reserves inflows minus outflows.
The primary tool of fiscal policy is
What will be an ideal response?