In Order to Assure Allocative Efficiency

question 12

Multiple Choice

In order to assure allocative efficiency:

• A)people's marginal rate of substitution must equal the economy's rate of product transformation.
• B)people's marginal rate of substitution must equal the firm's rate of technical substitution among inputs.
• C)a firm's rate of technical substitution must equal the economy's rate of product transformation.
• D)all of the above.

---

Definitions:

Statistical Inference

The process of drawing conclusions from data subject to random variation.

Questionnaire Data

Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

Personal Observation

An individual's own monitoring and recording of events or behaviors, used as a method of gathering data.

Data Collection Methods

Techniques and tools used to gather, measure, and analyze data from various sources for research or decision-making purposes.