Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

Which statement concerning efficiency is correct?

  • AAllocative efficiency occurs when marginal revenue equals marginal cost.
  • BAn economy is productively efficient when it is producing at a point on its production possibility curve.
  • CAn economy will improve its allocative efficiency when its production possibility curve moves outward.
  • DProductive efficiency occurs when the prices of goods equal their marginal cost of production.

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