The term allocative efficiency refers to a condition in the economy where the resources are being used
A. in the areas that they are most productive or best suited for.
B. to produce cake and not bread.
C. in various ways and that shifting resources from one area to another is cost free.
D. in the most flexible but not most productive ways.
E. in the least productive ways.
Ans: A. in the areas that they are most productive or best suited for.
You might also like to view...
The primary benefit of a monetary system of exchange compared to a barter system is the increased
a. ability to record transactions. b. time necessary to find trading partners. c. time devoted to shopping. d. efficiency in arranging transactions.
Because barriers to entry are low in competitive price-searcher markets, in the long run, a firm's price will be equal to
a. marginal revenue. b. average total cost. c. average variable cost. d. average fixed cost.