An Economy Will Be Allocatively Efficient If

question 37

Multiple Choice

An economy will be allocatively efficient if

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

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Definitions:

Interdependence

A mutual reliance between two or more groups, organisms, or objects, where each affects or depends on the others.

Familiarity Effect

The tendency of people to feel more positive toward a person, item, product, or other stimulus the more familiar they are with it.

Positive Toward

Positive toward is not a recognized psychological or scientific term and may be a typographical error or miscommunication. NO.

Stereotypes

Oversimplified and widely held beliefs about the characteristics, attributes, and behaviors of a particular group of people.