An Economy Will Be Allocatively Efficient If

question 96

Multiple Choice

An economy will be allocatively efficient if

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

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Definitions:

Socialist Countries

Nations where the government exercises significant control over the economy, often including ownership and management of production means, and prioritizes social equity.

Welfare

Governmental or private aid provided to individuals or groups in need, aimed at promoting their well-being and ensuring basic necessities are met.

Constructivism

A theory in education and psychology which posits that humans construct knowledge and meaning from their experiences.

Manufacturing Plant

A factory or industrial site where goods are produced or processed through machinery and labor.