There is often a trade-off between
A) productive efficiency and allocative efficiency.
B) limited and unlimited resources.
C) voluntary and involuntary exchanges.
D) economic efficiency and economic equity.
Answer: D
You might also like to view...
How do changes in income tax policies affect aggregate demand?
A) Higher taxes increase corporate investment and aggregate demand. B) Higher taxes reduce disposable income, consumption, and aggregate demand. C) Higher taxes increase aggregate supply and thus increase aggregate demand as well. D) Higher taxes increase disposable income, consumption, and aggregate demand.
When new farmers enter the wheat industry, the equilibrium price of wheat
a. always falls. b. falls only if existing firms gang up on the entrant. c. falls only if existing firms are earning no economic profit. d. falls only if the new firm is more efficient than existing firms.