In the Diagram, at Output Level Q₁

question 29

Multiple Choice

In the diagram, at output level Q₁,

• A)neither productive nor allocative efficiency is achieved.
• B)both productive and allocative efficiency are achieved.
• C)allocative efficiency is achieved, but productive efficiency is not.
• D)productive efficiency is achieved, but allocative efficiency is not.

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Definitions:

User Charges

are fees paid by the users of a public service or good, which are often used to fund the operation or maintenance of the service.

Voter Benefits

The advantages or improvements a voter may receive as a result of voting for a particular candidate, policy, or referendum.

Representative Democracy

A form of government in which elected officials represent a group of people, making decisions and passing laws on their behalf.

Productive

Refers to the efficiency and effectiveness in producing goods or services, often measured in terms of output per unit of input.