Explain the key distinction between technological efficiency and economic efficiency
What will be an ideal response?
The difference between technological and economic efficiency is that technological efficiency concerns the quantity of inputs used in production for a given level of output, whereas economic efficiency concerns the value of the inputs used. Economic efficiency requires technological efficiency, but technological efficiency does not require economic efficiency.
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According to the graph shown, if this economy were to open to trade, domestic prices would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. remain $16 for domestically produced goods, and be $23 for those units imported.
B. increase to $23 for all units.
C. remain $16, with more units sold overall.
D. decrease to $11 for all units.
The Canadian economy can be characterized by Equation 24.2.EQUATION 24.2:C = 500 + 0.5YdTaxes = 600Equilibrium Output = $4,000Refer to Equation 24.2. At equilibrium, saving in Canada equals
A. $1,200. B. $1,250. C. $1,350. D. $1,600.
Shocks to long-run aggregate supply can be a source of business fluctuations ________
A) only in real business cycle models B) only in new Keynesian models C) in both real business cycle and new Keynesian models D) only if the money supply rises
In the long-run, the aggregate supply curve normally is downward-sloping
a. True b. False Indicate whether the statement is true or false