The most desirable combination of output attainable with available resources, technology and social values is known as the:
a) Optimal mix of output.
b) Economic choice of output.
c) Preferred output choice.
d) Efficient choice of production.
Ans: a) Optimal mix of output.
You might also like to view...
Refer to the figure above. The region ABC shows the ________ due to the price ceiling
A) gain in consumer surplus B) gain in producer surplus C) deadweight loss D) economic loss
Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Suppose the government imposes a $2.00 per gallon tax on milk. The supply function for milk becomes:
A. Qsm = 4Pm - 6. B. Qsm = 6Pm - 6. C. Qsm = 6Pm - 20. D. Qsm = 6Pm - 10.
For a perfectly competitive firm, price is identical to marginal revenue at every quantity
a. True b. False
In periods of high inflation, _____
a. people want to hold as much money as possible b. the purchasing power of money decreases c. the real interest rate exceeds the nominal interest rate d. the nominal interest rates are likely to be low e. the nominal interest rate equals the real interest rate