A Cross-Section Graph

question 39

Multiple Choice

A cross-section graph

• A)measures time on the x-axis and the variable in which we are interested on the y-axis.
• B)is divided into different sections.
• C)shows the values of an economic variable for different groups in a population at a point in time.
• D)Both answers A and C are correct.
• E)Both answers A and B are correct.

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Definitions:

Allocative Efficiency

The optimal distribution of resources in an economy, ensuring that each good or service is produced up to the point where the last unit provides a benefit equal to the cost of producing it.

Perfectly Elastic

Describes a situation in demand or supply where the quantity demanded or supplied changes by an infinite amount in response to any change in price.

Monopolistically Competitive

Referring to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power.

Pure Monopolist

A market structure where a single firm is the sole producer for a product or service, with no close substitutes, giving it significant market power.