Allocative efficiency best explains ________, and productive efficiency best explains ________
A) how something will be produced; when something will be produced
B) when something will be produced; why something will be produced
C) why something will be produced; what will be produced
D) what will be produced; how something will be produced
Answer: D
You might also like to view...
Why are free riders a common problem for public goods?
A. Public goods are non-excludable and therefore people do not have to pay for the good to use it. B. Public goods are non-rivalrous and therefore one person's use diminishes another's use. C. Public goods are non-rivalrous and therefore people do not have to pay for the good to use it. D. Public goods are non-excludable and therefore one person's use does not diminish another's use.
As income and production rise, the demand for real money balances will ________ and interest rates will ________
A) fall; fall B) rise; rise C) rise; fall D) fall; rise
Left to itself, a natural monopoly will produce
a. nothing b. the efficient level of output c. the quantity at which marginal cost equals marginal revenue d. the quantity at which the marginal cost and demand curves intersect e. the quantity at which the long-run average total cost and demand curves intersect
The presence of positive externalities _____ justify the current structure of government programs for higher education.
A. should B. does C. should not D. does not