Distinguish between allocative efficiency and productive
Distinguish between allocative efficiency and productive efficiency. Give an illustration of achieving productive, but not allocative, efficiency?
Expert
Allocative efficiency means that resources are being used to produce the goods and services most wanted by society. The economy is then located at the optimal point on its production possibilities curve where marginal benefit equals marginal cost for each good. Productive efficiency means the least costly production techniques are being used to produce wanted goods and services. Example: manual typewriters produced using the least-cost techniques but for which there is no demand.
David Hume, who said about money such as “Tis none of the wheels of operate. Tis the oil’,” exposed a main error within mercantilism through explaining what is currently considered to as the: (w) quantity theory of money. (x) price l
Elucidate facilitating factors that explain the growth of trade?
What are the criteria of issuing stocks or bonds?
Explain how government might manipulate its expenditures and tax revenues to reduce rate of inflation?
Question: Monica has been considering buying a mountain bike. Last month Monica had an income of $30,000. The bike's price was $1000, the composite good price was $1, and she decided not to buy the bike. This month Monica was surprised t
Briefly explain how the competitive market economy will make the needed adjustments to reestablish an efficient allocation of society’s scarce resources?
When, in a perfectly competitive industry, where the market price facing a firm is above its average total cost on the output here marginal revenue equivalents marginal cost, in that
What are the major provisions of GATT
Describe briefly Operating income approach?
Drawing a production possibilities frontier needs the supposition that: (1) Decision makers encompass discretion over resource accessibility. (2) Technology is constant. (3) Income is fairly distributed. (4) Resources are considerably diverse. (5) At least three goods
18,76,764
1955023 Asked
3,689
Active Tutors
1438512
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!