Which of the following statements is true?
A. A competitive market economy cannot achieve both productive efficiency and allocative efficiency simultaneously.
B. A competitive market can achieve productive efficiency without achieving allocative efficiency.
C. A competitive market cannot achieve productive efficiency without also achieving allocative efficiency.
D. A competitive market can achieve allocative efficiency without achieving productive efficiency.
Answer: B
You might also like to view...
Given the budget line in the above figure, what is the household's real income in terms of pizzas per month?
A) 5 pizzas per month B) 4 pizzas per month C) 3 pizzas per month D) All of above represent the household's real income.
Refer to Figure 5-6. What does D1 represent?
A) the demand curve reflecting private benefits B) the demand curve reflecting social benefits C) the social welfare curve D) the positive externalities curve
If the United Auto Workers' Union obtained a 15 percent increase in the wages of its workers, employment in the auto industry would most likely fall if
a. the demand for American-made automobiles was highly inelastic. b. American consumers considered foreign automobiles a poor substitute for American-made automobiles. c. the demand for American-made automobiles was highly elastic. d. the demand for American-made automobiles was increasing.
Refer to the accompanying figure.
In the figure, a business cycle peak is shown by which point(s)?
A. D only B. A and C and E C. B and D D. E only