Author Question: Allocative efficiency is achieved when A) firms produce the goods and services that consumers ... (Read 109 times)

vicotolentino

  • Hero Member
  • *****
  • Posts: 552
Allocative efficiency is achieved when
 
  A) firms produce the goods and services that consumers value most.
  B) firms produce goods and services at the lowest cost.
  C) there are no shortages or surpluses in the market.
  D) goods and services are fairly distributed among consumers in an economy.

Question 2

Assume that China has a comparative advantage in producing corn and exports corn to Japan. We can conclude that
 
  A) Labor costs are higher for corn producers in Japan than in China.
  B) China also has an absolute advantage in producing corn relative to Japan.
  C) Japan has an absolute disadvantage in producing corn relative to China.
  D) China has a lower opportunity cost of producing corn relative to Japan.


frre432

  • Sr. Member
  • ****
  • Posts: 347
Answer to Question 1

A

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

For a complete list of videos, visit our video library