An efficient allocation of resources exists if
A. one group of people can get more of the things they want without someone else having to give up anything.
B. no one can get more of the things he or she wants without someone else having to give up something.
C. the economy operates at any point under the production possibilities frontier.
D. the economy is operating at any point above the production possibilities frontier.
Answer: B
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The sequence of events following a contractionary monetary policy would be higher interest rates followed by dollar
a. depreciation, higher exports, and lower imports. b. depreciation, lower exports, and higher imports. c. appreciation, lower exports, and higher imports. d. appreciation, higher exports, and lower imports.
Which of the following statements about the way markets allocate resources is most accurate from society's perspective?
A. Markets always fail to allocate resources properly, so we must rely on the government to determine the proper use of our resources. B. The market may not always allocate resources in a way that is in society's best interest. C. Resource allocation by markets may not be perfect, but it is always better than government allocation of resources. D. The market always allocates resources in the best way.