If productive efficiency characterizes a market A) the ...

[charchew]

If productive efficiency characterizes a market
 
  A) the marginal cost of production is minimized.
  B) the output is being produced at the lowest possible cost.
  C) firms use the best technology available to produce the good.
  D) firms produce the goods that consumers desire most.

Question 2

The horizontal-equity principle of taxation is not easy to use in practice because
 
  A) different people receive different levels of government benefits even if their incomes are the same.
  B) people can use tax loopholes to reduce their incomes below the incomes of other taxpayers.
  C) it is difficult to determine whether people are in the same economic situation.
  D) some people engage in rent seeking to reduce their taxes below the level other people pay.

[pangili4]

Answer to Question 1

B

Answer to Question 2

C