An Economy Will Be Allocatively Efficient If

question 96

Multiple Choice

An economy will be allocatively efficient if

• A)the economy's resources are fully employed.
• B)all firms are breaking even.
• C)the average cost of production is the lowest possible for all goods produced.
• D)price equals marginal cost for all products.
• E)the price equals average cost for all goods.

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Definitions:

Tax Deductible

Expenses or costs that can be subtracted from gross income to reduce the taxable income.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry.

Pension Reform Act

Legislation aimed at improving the management and sustainability of pension funds.

Funding Agency

An organization that provides financial support for various projects or programs, often within the public or nonprofit sector.