Which of the Following Is True

question 241

Multiple Choice

Which of the following is true?
i.Production efficiency occurs only when resources are used to produce the combination of goods that has the greatest value.
ii.Allocative efficiency occurs when marginal benefit equals marginal cost.
iii.A demand curve is a marginal cost curve.

• A) Only ii
• B) Only i
• C) Only iii
• D) i and ii
• E) ii and iii

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Definitions:

Net Profit

The amount of money that remains from revenues after all expenses, taxes, and costs have been subtracted.

Expected Returns

The mean of all the likely returns for an investment or portfolio over a given period, accounting for the risk of those returns.

Portfolio

An assortment of financial assets such as equities, bonds, commodities, money, and near-money assets, encompassing both closed-end funds and exchange-traded funds (ETFs).

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to 1.