What rule must be followed to obtain an efficient allocation of resources?

A. P = AC.
B. P = MC.
C. P = AR.
D. MR = AC.

Answer: B

Economics

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The equation for the given saving schedule is:



A.  Y d = -20 + .8S.
B.  Y d = 20 + .2S.
C.  S = -20 + .2Y d .
D.  S = 20 + .8Y d .

Economics

If the interest rate increases, then the:

A. economy will move to a new point along the existing consumption function. B. consumption function will shift up. C. consumption function will shift down. D. investment demand curve will shift up.

Economics