-In the Figure Above, the Allocatively Efficient Output of Computers

question 3

Multiple Choice

-In the figure above, the allocatively efficient output of computers is

• A)3 million per year.
• B)4 million per year.
• C)the largest amount possible.
• D)2 million per year.

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Definitions:

World Price

The global market price of a good or service, influenced by worldwide demand and supply.

Free Trade

Free trade is an economic policy that allows goods and services to be bought and sold across international borders with little to no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

Domestic Supply

The total amount of goods and services produced within a country's borders available for consumption or export.

Domestic Demand

The sum of all requests for goods and services in a country.