The current official "base year" is

Using this consumption function, autonomous consumption is

A) $0. B) between $1 and $2 trillion. C) more than $2 trillion and less that $5 trillion. D) more than $5 trillion and less than $8 trillion. E) more than $8 trillion.

Allocative efficiency is achieved when

A) goods and services are fairly distributed among consumers in an economy. B) firms produce the goods and services that consumers value most. C) firms produce goods and services at the lowest cost. D) there are no shortages or surpluses in the market.