Which of the following statements is correct?
A) Mrs. Lovejoy decides to invest in companies which she believes are producing their goods based on the preferences of consumers. Mrs. Lovejoy is therefore investing in companies that are productively efficient.
B) Mrs. Lovejoy decides to invest in companies which she believes are producing their goods based on the preferences of consumers. Mrs. Lovejoy is therefore investing in companies that are both allocatively and productively efficient.
C) Mrs. Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost. Mrs. Lovejoy is therefore investing in companies that are productively efficient.
D) Mrs. Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost. Mrs. Lovejoy is therefore investing in companies that are allocatively efficient.
Answer: C
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Refer to the figure above. Which of the following combinations is attainable but inefficient?
A) A B) B C) C D) D
The net capital outflow is the net flow of:
A. capital goods owned outside a country. B. funds invested outside of a country. C. capital goods owned within a country. D. funds invested within a country.
If a freeze destroys much of the crop of an agricultural nation, then
A. the desired investment curve would shift to the right. B. net foreign lending would increase. C. net foreign lending would decrease. D. the desired investment curve would shift to the left.
To be eligible for Medicaid, pregnant woman and children under one-year-of-age must live in a household with family income under
A. 133% of the poverty line for their family size. B. 185% of the poverty line for their family size. C. $10,000. D. $35,000.