How is the most-valued or optimal point on the production possibilities curve determined?
Please provide the best answer for the statement.
Full employment and productive efficiency allows a society to achieve any point on the production possibilities curve. What point on the curve, however, is optimal? Answering this question focuses on the attainment of vocative efficiency. Any economic activity should be increased so long as the marginal benefit exceeds the marginal cost. Conversely, any economic activity should be decreased so long as the marginal cost exceeds the marginal benefits. Resources are efficiently allocated to an economic activity when the marginal cost equals the marginal benefit.
You might also like to view...
Consider the following: The relative price of hamburgers this year has
A) increased. B) decreased. C) stayed the same. D) Not enough information has been given to calculate an answer.
A tax for which the rate varies directly with the income of the person taxed is known as a(n):
a. regressive tax. b. progressive tax. c. proportional tax. d. flat tax. e. excise tax.
Which of the following statements regarding the quality of managed care is accurate?
a. Managed care focuses on the ability to pay. b. Empirical evidence suggests that managed care fails to reduce health care spending. c. Empirical studies show little evidence that managed care quality was lower than that found in fee-for-service plans. d. Most of managed care's savings do not affect hospitalization.
Changes in nominal GDP always reflect changes in real output.
Answer the following statement true (T) or false (F)