A decrease in investment causes the price level to ________ in the short run and ________ in the long run

If society can produce more of one good but must forgo some of another good to do so, it is definitely achieving

A) both production and allocative efficiency. B) only production efficiency. C) only allocative efficiency. D) neither production nor allocative efficiency. E) None of the above answers is correct because when society must forgo another good to produce more of one good, then society might be production efficient or it might be allocatively efficient.

A competitive equilibrium may fail to be Pareto optimal due to all of the following except

A) inequality. B) externalities. C) distorting taxes. D) non-price-taking firms.