Allocative efficiency is achieved when
A) goods and services are fairly distributed among consumers in an economy.
B) firms produce the goods and services that consumers value most.
C) firms produce goods and services at the lowest cost.
D) there are no shortages or surpluses in the market.
Answer: B
Economics
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Other things constant, a ________ price ________ quantity demanded
A) higher; increases B) lower; increases C) higher; decreases D) lower; decreases E) both B and C above.
Economics
When a shortage of a goods leads to a price increase, its price usually rises because
A) Americans are committed to capitalism. B) most people are better off if it does. C) sellers can benefit by raising their prices. D) higher prices lead to scarce goods being allocated most efficiently.
Economics