Only one of the following statements is correct. The statements compare perfectly competitive (PC) markets and monopolistically competitive (MC) markets. Which statement is correct?
A) Productive efficiency is achieved in both PC and MC markets. Allocative efficiency is achieved only in MC markets.
B) Allocative efficiency is achieved only in PC markets. Productive efficiency is achieved only in MC markets.
C) Productive efficiency and allocative efficiency are both achieved in PC markets. Neither is achieved in MC markets.
D) Allocative efficiency is achieved in both PC and MC markets. Productive efficiency is achieved only in PC markets.
C
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Often people trying to withdraw money from their bank must wait in line, which reflects a ________ allocation method
A) first-come, first-served B) market price C) contest D) command
When the LM curve is vertically sloped, the __________ in income due to a change in the money supply will be __________ when the LM curve is positively sloped, but not vertical
A) decrease; greater B) decrease; smaller C) increase; greater D) increase; smaller
When workers expect the real wage to rise at a rate similar to productivity improvements, ________
A) the decrease in labor supply raises the real wage B) the increase in labor supply lowers the real wage C) the increase in labor supply raises the real wage D) the decrease in labor supply lowers the real wage
A positive, pure income effect can be obtained by
A) increasing the real wage. B) increasing the tax. C) increasing the dividend. D) decreasing leisure.