What conditions must be satisfied if resources are used efficiently?
What will be an ideal response?
Resources are used efficiently when more of one good or service cannot be produced without producing less of some of another good or service that is valued more highly. This is known as allocative efficiency and it occurs when: 1) production efficiency is achieved, and 2) the marginal benefit received from the last unit produced is equal to the marginal cost of producing the last unit.
Economics
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One key to keeping inflation low is to have an independent central bank
Indicate whether the statement is true or false
Economics
Refer to Figure 14.1. The income effect of the wage increase on the amount of hours of leisure is:
A) L0 to L2. B) L0 to L1. C) L1 to L2. D) L2 to L1. E) none of the above
Economics