i Question 2 (1 point) ter When an economy uses the most efficient means of farm

Question

i Question 2 (1 point) ter When an economy uses the most efficient means of farming to grow as much corn as possible. this economy has achieved: a) production efficiency but not necessarily allocative efficiency. b) neither production efficiency nor allocative efficiency c) allocative efficiency but not necessarily production efficiency d) production efficiency and allocative efficiency Save . Question 3 (1 point) Which headline would be LEAST likely to be studied in macroeconomics? a) The Fed Raises Interest Rates

Explanation / Answer

(Question 2) Option (a)

The most efficient means of production means the farmers are producing at lowest average total cost. This ensures productive efficiency. But allocative efficiency means farmers are equating price with their marginal cost, which may or may not be true because that information is not available.

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