Scelta multipla
Which of the following is NOT considered a factor in determining economic efficiency?
146
views
1. Introduction to Microeconomics
Productive and Allocative Efficiency
Scelta multipla
Which of the following statements is true about allocative efficiency?
A
Allocative efficiency requires that all individuals receive equal shares of output.
B
Allocative efficiency occurs when resources are distributed in a way that maximizes total societal welfare.
C
Allocative efficiency is unrelated to consumer preferences.
D
Allocative efficiency is achieved when firms produce at the lowest possible average cost.
Guida verificata passo dopo passo1
Step 1: Understand the concept of allocative efficiency. Allocative efficiency occurs when resources are distributed in a way that maximizes total societal welfare, meaning goods and services are produced according to consumer preferences and marginal benefit equals marginal cost.
Step 2: Analyze the first statement: 'Allocative efficiency requires that all individuals receive equal shares of output.' This is incorrect because allocative efficiency focuses on maximizing welfare, not equal distribution.
Step 3: Analyze the second statement: 'Allocative efficiency occurs when resources are distributed in a way that maximizes total societal welfare.' This aligns with the definition of allocative efficiency and is therefore true.
Step 4: Analyze the third statement: 'Allocative efficiency is unrelated to consumer preferences.' This is false because allocative efficiency depends on producing goods and services that consumers value most, reflecting their preferences.
Step 5: Analyze the fourth statement: 'Allocative efficiency is achieved when firms produce at the lowest possible average cost.' This describes productive efficiency, not allocative efficiency, so it is incorrect.
Video correlati
Pratica correlata
