Allocative Efficiency Is Achieved When

question 61

Multiple Choice

Allocative efficiency is achieved when

• A)a point beyond the production possibilities curve is reached.
• B)technological change occurs.
• C)the economy is producing on its production possibilities curve.
• D)the maximum amounts of the most desired goods and services are being produced.

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Definitions:

Policy of Deterrence

A strategy aimed at dissuading an adversary from taking an unwelcome action by threatening negative consequences or retaliation.

Containment

A strategic policy aimed at preventing the expansion of an adversary's influence or ideology, often used in the context of the Cold War.

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies, which lasted from the end of World War II until the dissolution of the Soviet Union in 1991.

Monroe Doctrine

A principle of US foreign policy that opposed European colonialism in the Americas and stated that any intervention by external powers in the politics of the Americas is a potentially hostile act against the US.