b. False
B. Allocative efficiency occurs when an economy no longer relies on voluntary exchange.
C. Allocative efficiency occurs when an economy achieves equity.
D. Allocative efficiency occurs when production is in accordance with consumer preferences.
Answer:
D. Allocative efficiency occurs when production is in accordance with consumer preferences.
Explanation:
Allocative efficiency occurs where price equals marginal cost. Price equals the amount consumers willingly pay for a product, so allocative efficiency occurs where marginal utility = marginal cost
Allocative efficiency is achieved when goods and services are produced and distributed in accordance with what consumers demand or desire, ensuring optimal allocation of resources.
Allocative efficiency occurs when production is in accordance with consumer preferences. In other words, this economic principle is achieved when goods and services are distributed optimally in response to consumer demand—that is when the mix of goods produced represents what society most desires. For example, if consumers need more of good X and less of good Y, the economy should reallocate resources to produce more of good X and less of good Y to achieve allocative efficiency.
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Answer:
Shrinkage expense
Explanation:
The journal entry is shown below:
Shrinkage expense A/c Dr $15,000
To Inventory A/c $15,000
(Being the shrinkage is recorded)
The computation is shown below"
= Current inventory amount - actual inventory amount
= $500,000 - $485,000
= $15,000
Simply we debited the shrinkage expense account and credited the inventory account so that the correct posting can be done
Answer:
Purchase money mortgage.
Explanation:
A purchase money mortgage is the loan that is given to the individual buying the property.
This loan is issued by the seller of the property as a part of the transaction made when selling the property. The interest rate that comes with this type of loan is high.
The buyers benefit from the purchase money mortgage due to the flexible requirements that is needed in collecting the loan while the sellers benefits from the high interest rates that is added to the loan.