The Canadian Economy Is Achieving Allocative Efficiency If

question 18

Multiple Choice

The Canadian economy is achieving allocative efficiency if

• A) there are no idle resources in the economy.
• B) marginal product is equal for all factors of production.
• C) marginal cost is equalized across industries.
• D) marginal cost equals price in all industries.
• E) price equals average cost in all industries.

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Definitions:

Journal Entries

Recorded transactions or adjustments in the financial records of a company, marking the debit and credit of accounts affected by business operations.

Debt Ratio

A ratio indicating the level of a firm's indebtedness by dividing its total obligations by its overall assets.

Financial Leverage

The use of borrowed funds to increase the potential return on investment.

General Journal

A comprehensive journal that records the initial data for all different types of financial transactions.