Productive Efficiency Implies That

question 105

Multiple Choice

Productive efficiency implies that

• A) it is impossible to obtain gains in one area without losses in another.
• B) it is possible to obtain gains in one area without losses in another.
• C) there are too many resources available.
• D) there are too few resources available.

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Definitions:

Concentration Ratio

An indicator that measures the total market share of the top firms in an industry, used to assess the level of market concentration.

Competitive

Describes a market situation where multiple sellers are vying for the same customer base, promoting innovation and price reduction.

Excise Tax

A tax imposed on specific goods and services, such as tobacco, gasoline, and alcohol, often used to discourage their use and generate revenue.

Restrictions on Advertising

Regulations or limitations placed on the content, timing, and medium of advertising to protect consumers and promote fair competition.