Book Title:
Author(s):
Some examples from this set of practice questions
1.
What is economic efficiency?
Answer: Where scarce resources are used in the most efficient way to produce maximum output.
2.
What is productive efficiency?
Answer: When a firm is producing at the lowest possible cost.
3.
What is allocative efficiency?
Answer: Where price is equal to marginal cost; firms are producing those goods and services most wanted by consumers.
4.
What is pareto optimality?
Answer: Where it is imposible to make someone better off without making somebody else worse off.
5.
What is an externality?
Answer: Where the actions of producers or consumers give rise to side effects to third parties who did not partake in the action; sometimes referred to as spillover effects.
6.
What is a negative externality?
Answer: Where the side effects have a negative impact and impose costs to third parties.
7.
What is a positive externality?
Answer: Where the side effects have a positive impact and provide benefits to third parties.
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Stuvia is a marketplace, so you are not buying this document from us, but from seller arthurknight. Stuvia facilitates payment to the seller.
No, you only buy these notes for $8.39. You're not tied to anything after your purchase.
4.6 stars on Google & Trustpilot (+1000 reviews)
95132 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
