Which statement about allocative efficiency is true?
a. Allocative efficiency requires productive efficiency.
b. Productive efficiency leads to allocative efficiency.
c. Allocative efficiency is profitable but wasteful.
d. Allocative efficiency benefits firms but not society.
a. Allocative efficiency requires productive efficiency.
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Income security expenditures include
A. Medicare, Social Security, and unemployment compensation. B. Social Security and disability benefits, but not Medicare. C. unemployment compensation, disability benefits, and Medicare, but not Social Security. D. transfer payments to the disadvantaged, but not transfer payments to the elderly.
Suppose the market for "soda X" is in equilibrium. If the FDA announced today that this soda has been proven to cause a fatal disease, what would be most likely to happen to the equilibrium price and equilibrium quantity of soda X?
A. Price increases and quantity increases B. Price decreases and quantity increases C. Price increases and quantity increases D. Price decreases and quantity decreases