An Economy Will Be Allocatively Efficient If

question 23

Multiple Choice

An economy will be allocatively efficient if

• A)marginal cost equals price for all goods.
• B)the economy's resources are fully employed.
• C)imperfectly competitive markets are regulated.
• D)the marginal costs of all firms in an industry are equal.
• E)least- cost production techniques are employed by all firms.

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Definitions:

Pearson Correlation

A measure of linear correlation between two variables, ranging from -1 to 1, where 1 means a perfect positive linear relationship, -1 means a perfect negative linear relationship, and 0 indicates no linear relationship.

Non-Directional

Refers to a hypothesis that predicts a change or difference but does not specify the direction of the change.

Sample Size

The number of observations or data points collected from a subset of a larger population for the purpose of statistical analysis.

Pearson Correlation

A measure of the linear correlation between two variables, showing how closely the data fit to a line.