An Economy Will Be Allocatively Efficient If

question 95

Multiple Choice

An economy will be allocatively efficient if

• A)the price equals average cost for all goods.
• B)all firms are breaking even.
• C)price equals marginal cost for all products.
• D)the average cost of production is the lowest possible for all goods produced.
• E)the economy's resources are fully employed.

---

Definitions:

Advocacy

The act of supporting or arguing in favor of a particular cause, policy, or group of people, often to promote social change or to protect rights.

Person-in-the-environment

A perspective in social work and psychology that considers the dynamics between individuals and their various physical and social environments.

Two-prong Approach

A strategy that utilizes two separate methods or lines of action to address a problem or achieve a goal.

Social Issues

Problems that influence a considerable number of individuals within a society, often requiring collective efforts for resolution.