Economic efficiency is achieved
a. when all resources are fairly allocated
b. when an economy is producing the maximum possible amount of goods and services
c. when production or allocation of goods cannot be rearranged to make one person better off while harming no one else.
d. if production or allocation of goods cannot be rearranged to make at least one person better off
e. if production or allocation of goods cannot be rearranged in a way the benefits more people than it harms
C
You might also like to view...
In the short run, a fiscal policy action that results in a reduction in the size of the budget deficit will cause
A) a reduction in real GDP with falling prices if the economy was below or at full employment. B) an inflationary gap if the economy was initially operating below full employment. C) an inflationary gap if the economy was initially operating at full employment. D) an increase in real GDP with stable prices if the economy was below full employment.
Which of the following is not a criticism of monopolies?
a. They restrict output. b. They set price above the perfectly competitive level. c. They tend to be less innovative than firms in a competitive market. d. They exert a disproportionate amount of political influence. e. They reduce allocative efficiency through perfect price discrimination.