Allocative efficiency Study guides, Revision notes & Summaries

PCE 9 2023 Exam Questions with Complete Solutions two types of market models that closely approximate many markets in the real world are - ANSWER monopolistic competition and oligopoly a(n) _oligopoly_ is a market dominated by a few large producers of a homogeneous or differentiated product - ANSWER oligopoly when plant and equipment are underutilized because firms are producing less than the minimum- ATC output, this is known as having _productive inefficiency_ _exce...

Edexcel A-Level Economics A: DefinitionsEdexcel A-Level Economics A: DefinitionsEdexcel A-Level Economics A: Definitions Absolute advantage - ANSWER-When a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWER-When a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) - ANSWER-The total demand/spending in an economy at a given price level over a given period of time. Made up of consu...

Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWERSWhen a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) - ANSWERSThe total demand/spending in an economy at a given price level over a given period of time. Made up of consumption, investment, government spending and net external demand. Aggregate Supply (AS) - ANSWERSThe total amount of goods...

Economics - Answer-social science that studies the choices that individuals, businesses, governments, and societies make as they cope with scarcity, incentives, and reconcile those choices Macroeconomics - Answer-Study of the performance of the national and global economies E.x. Why is the unemployment rate in the U.S. so high? Microeconomics - Answer-Study of choices that individuals and businesses make, the way those choices interact in markets, and the influence of governments E.x. Why ...

Absolute Advantage - ANSWER-The capability to produce more of a given product using less of a given resource than a competing entity Absolute Quota - ANSWER-Strictly limiting the quantity of goods that may enter a country Accounting Profit - ANSWER-Total revenues minus explicit costs, including depreciation Acquisition - ANSWER-When one firm purchases another Ad Valorem Tariffs - ANSWER-Import tax based on a fixed percentage of the assessed commercial value of imported goods Adver...

ECONOMICS Chapter 13 Study Set QUESTION AND CORRECT ANSWER Monopolistic competition means: <a market situation where competition is based entirely on product differentiation and advertising. <a large number of firms producing a standardized or homogeneous product. <many firms producing differentiated products. <a few firms producing a standardized or homogeneous product. many firms producing differentiated products. Monopolistic competition is characterized by a: <...

PCE 9 2023 Exam Questions with Complete Solutions two types of market models that closely approximate many markets in the real world are - ANSWER monopolistic competition and oligopoly a(n) _oligopoly_ is a market dominated by a few large producers of a homogeneous or differentiated product - ANSWER oligopoly when plant and equipment are underutilized because firms are producing less than the minimum- ATC output, this is known as having _productive inefficiency_ _excess capacity_. - A...

perfect competition - Answer a market structure in which a large number of firms all produce the same product Perfectly competitive market Characteristics - Answer 1. infinite number of suppler and consumers 2. each firm is a price taker 3. consumers have perfect information 4. producers have perfect information 5. products are homogeneous 6. Firms are profit maximisers 7. no entry barriers Allocative efficiency in perfect competition - Answer it is allocatively efficien b...

In economics the pleasure, happiness, or satisfaction received from a product are called __________. correct answers Utility An __________ ___________ is the cost associated with the alternative that was sacrificed to do or acquire something else. It is the cost associated with the foregone opportunity. correct answers Opportunity cost The study of economics is primarily concerned with what? correct answers Choices that are made in seeking to use scarce resources efficiently. The ______...

AP Microeconomics Final Exam Questions with complete solution 2023 All of the following are true of allocatively efficient markets except - correct answer Consumers place a higher value on that product that it is costing firms to produce What type of efficiency is defined as the mix of goods and services produced that are just what society desires? - correct answer Allocative efficiency A perfectly competitive firm