People Are Likely to Make Good Decisions Only If They

question 103

True/False

People are likely to make good decisions only if they understand the options that are available to them.

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Definitions:

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a marginal benefit equal to its marginal cost of production.

Productive Efficiency

A situation in which an economy or entity can no longer produce additional amounts of a good without lowering the production level of another product.

Substitute Goods

Products or services that can be used in place of each other, having a positive cross-elasticity of demand.

Productive Efficiency

A situation in which a good or service is produced at the lowest possible cost.