When resources are allocated to their highest valued

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1. When resources are allocated to their highest valued use? __________ is achieved and when goods and services are produced at the lowest possible cost? _______ is achieved.

A. voluntary? exchange; maximum profit

B. allocative? efficiency; profit maximization

C. productive? efficiency, allocative efficiency

D. allocative? efficiency, productive efficiency

2. If two goods are? substitutes, then their

A. income elasticities are positive.

B. cross price elasticities are positive.

C. cross price elasticities are negative.

D. income elasticities are negative.

Reference no: EM131244544

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