Figure 17-10

Differences in the stock of technology between nations are an example of a(n):

A) proximate cause of prosperity. B) implicit cause of prosperity. C) explicit cause of prosperity. D) fundamental cause of prosperity.

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.