Dr. Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services. What would Dr. Goldfinger need to do to try to achieve allocative efficiency?
A) invest in companies that produce goods and services based on consumer preferences
B) invest in companies that produce goods and services at the lowest possible cost
C) invest in companies that fairly distribute their products and services
D) invest in companies that produce up to the point where the marginal cost of the last unit produced is zero
Answer: A
You might also like to view...
According to the 1790 census, the majority of whites had links to
(a) the British Isles, thus explaining why British institutions were selected to guide development and growth in the colonies. (b) Germany, thus explaining why German institutions were selected to guide development and growth in the colonies. (c) Spain, thus explaining why Spanish institutions were selected to guide development and growth in the colonies. (d) Madagascar and Zanzibar, thus explaining why institutions from Madagascar and Zanzibar were selected to guide development and growth in the colonies.
Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. The quota will make total consumer surplus equal to
A) $25,000. B) $13,125,000. C) $40,000,000. D) $62,500,000. E) $75,625,000.
The opportunity cost of owner-provided labor is the
A) wage rate paid to the owner. B) explicit part of the wage rate paid to the owner. C) salary the owner could have made if she worked at her best alternative job. D) profit after all of the bills have been paid.
According to Keynesians, an increase in production when the money supply is fixed will
a. increase the transactions demand for money and that will cause the velocity of money to increase b. increase the transactions demand for money and that will cause the velocity of money to decrease c. decrease the transactions demand for money and that will cause the velocity of money to increase d. decrease the transactions demand for money and that will cause the velocity of money to decrease e. increase the speculative demand for money and that will cause the velocity of money to increase