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.
A guanacaste tree, Enterolobium cyclocarpum, growing in Costa Rica. Guanacaste trees, which produce
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The large, white flowers of giant saguaro cactus (Carnegiea gigantea) produce sweet nectar. The flow