Allocative efficiency - Study guides, Class notes & Summaries

EC 248 Final Exam | Complete Solutions (Verified Answers) Health care a) is the most important determinant of health in OECD countries. b) is the most expensive determinant of health in OECD countries. c) spending continues to grow rapidly in most OECD countries. d) sector is one of the largest sectors in most OECD countries. What statement best describes a health system? a) Aspects of society that have an important bearing on the health care of individuals and the population. b) Aspects of so...

Which of the following describes a situation in which every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it? A) productive efficiency B) allocative efficiency C) marginal efficiency D) profit maximizatio correct answers B) Allocative efficiency One reason why the coffeehouse market is competitive is that... A) demand for specialty coffee is very high. B) it is trendy and therefore is like...

ECON 251 Exam 2 Purdue Latest Version 100% Pass Budget Lines Line describing the limits to consumtion possibilities Budget line equation Income= (price of good x)(quantity of good x) + (price of good y)(quantity of good y) Utility Unit of happiness Marginal utility Additional utility of one more unit Marginal utility equation (Change in utility)/(change in quantity) Consumer equilibrium Maximizes utility Consumer equilibrium equation (Mu of x)/(P of x= (Mu of y)/(P of y) (big chart w q, u,...

Allocative Efficiency - Answer Occurs when the available economic resources are used to produce the combination of goods and services that best matches people's tastes and preferences Positive Statements - Answer A statement of fact that can be tested to see if it is incorrect or correct Normative Statements - Answer A statement that includes a value judgement and cannot be disproved just by looking at evidence Need - Answer Something that is essential for human survival e.g. f...

EC 248 Midterm Exam | Verified with 100% Correct Answers What statement best describes a health system? A. Aspects of society that have an important bearing on the health care of individuals and the population. B. Aspects of society that have an important bearing on the health of individuals and the population. C. Aspects of society that have an important bearing on the health care at the population level. D. Aspects of society that have an important bearing on health at the population level. ...

Model correct answers A theoretical concept that looks at how differant variables interact. Ceteris Paribus correct answers All other factors remain the same. Positive Statement correct answers Objective, factually based comments that can be tested. Normative Statement correct answers Subjective, questionable comments based on valued judgements that are difficult to test. Scarcity correct answers When there are unlimited human wants but limited number of resources to meet these wants...

Accelerator Effect - Answer The relation between the change in new investment and the rate of change of national income. Actual Supply - Answer The amount that producers in fact produce. This may differ from planned supply for a variety of reasons such as breakdowns in production, staff absences, etc. Aggregate Demand - Answer Total planned expenditure in the economy. Known by the identity C + I + G + (X - M) Aggregate Supply - Answer The total value of goods and services suppli...

ECON 251 EXAM 3 – PURDUE LATEST 2024 GRADED A Max profit MR = MC substitution effect Px/Py effect of change in "relative price" Profit Tr-Tc or (mc)(q)-TC or q(p-ATC) MPl change in Q / change in L Marginal utility per dollar Mu/p Mu= change in U/ change in Q P ( for natural) MC, but MC<Atc So P<ATC Max Utility MUx/Px = MUy/Py ATC TC/Q or AFC + ATC AFC FC/Q TC FC+VC Price giffen good falls? violates law of demand AVC VC/Q P* MR short run some input is fixed MC change i...

examples of inefficiency when still fully employing all resources correct answers -if firms do not use the least cost method of production -if the marginal cost of production is not the same for every firm in an industry -if too much of one product and too little of another product are produced productive efficiency for the firm correct answers -when the firm chooses among all available production methods to produce a given level of output at the lowest possible cost -requires the firm to ...

examples of inefficiency when still fully employing all resources correct answers -if firms do not use the least cost method of production -if the marginal cost of production is not the same for every firm in an industry -if too much of one product and too little of another product are produced productive efficiency for the firm correct answers -when the firm chooses among all available production methods to produce a given level of output at the lowest possible cost -requires the firm to ...