[Solved] What Does Productive Efficiency Mean

Why does the market fail to produce public goods? A)Because normally there is no demand for such goods. B)Because it is impossible for the producer to exclude non-buyers from enjoying the benefit. C)Because such products usually entail large external costs. D)Because their production normally leads to increased income inequality.

All of the following,except one,are features of a public good.Which is the exception? A)Public goods are products whose benefits are not affected by the number of users. B)Public goods could be produced by the market. C)Public goods are provided by the government. D)Public goods could not be produced by private firms at a profit.

All of the following,except one,are examples of market failures.Which is the exception? A)Competitive markets do not result in an equitable distribution of incomes and wealth. B)Competitive markets do not ensure that the economy will be stable. C)Competitive markets do not ensure that competition will continue. D)Competitive markets do not ensure that individuals get the type of jobs they would like. E)Competitive markets do not take externalities into consideration.

When does allocative efficiency occur? A)When the price of the product is equal to its short-run average cost. B)When the price of the product is equal to its long-run average cost. C)When the price of the product is equal to its marginal cost. D)When the price of the product is below its marginal cost.

Which of the following statements is correct regarding the term marginal social cost? A)It includes only the private costs of production. B)It includes only the external costs of production. C)It includes both the private and the external costs of production. D)It is the difference between external costs and private costs of production.

What does allocative efficiency mean? A)That a product is produced where its price is equal to its marginal costs. B)That a product is produced where its price is below its marginal costs. C)That a product is produced where its price is equal to its average costs. D)That a product is produced where its price is below its average costs.

What does the term "forces of uncompetition" refer to? A)The tendency in the market for some firms to grow larger and drive other firms out of business,thereby eroding perfect competition. B)The inability of firms to provide all the products that people want. C)The inevitable wealth and income inequalities resulting from the market. D)The tendency of governments to take over certain firms.

All the following,except one,are benefits of the perfectly-competitive market system.Which is the exception? A)It is productively efficient. B)It ensures that income is fairly distributed. C)It is allocatively efficient. D)It is a costless system.

Table 9.1,which shows the toll charges on a particular highway. -Refer to Table 9.1 to answer this question.If using the road was presently free,what toll charge would be necessary to reduce traffic by 40 percent? A)$1. B)$2. C)$3. D)$4.

Table 9.1,which shows the toll charges on a particular highway. -Refer to Table 9.1 to answer this question.If the user price was presently $1,what increase in the toll charge would be necessary to reduce traffic by 2,000 vehicles per hour? A)$1. B)$2. C)$3. D)$4.