An efficient allocation of goods in an exchange economy means that
A) goods were produced by the most efficient technology available.
B) no one can be made better off without making somebody else worse off.
C) those made worse off are not hurt as badly as the benefits resulting from those made better off. That is, there is a net positive gain.
D) in a particular production process one gets the maximum output for a given input.
B
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Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect
Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________. A) more; less B) less; less C) more; more D) less; more
According to the law of demand, when will higher corn prices reduce the quantity demanded of corn?
a. Always. b. When the supply of corn is fixed. c. When nonprice determinants, like income and the number of buyers, are unchanged. d. When there are no shortages or surpluses of corn.