ECO100Y5 Lecture Notes - Price Ceiling, Allocative Efficiency, Marginal Revenue

Government intervention in the form of price ceiling and price floor leads to: 

a) Allocative efficiency.

b) Productive efficiency.

c) Loss of economic efficiency.

d) all of the above.

e) none of the above.

Relative to a market economy, a centrally-planned economy would be expected to be:
A) Better at neither productive efficiency nor allocative efficiency
B) Better at allocative efficiency but not productive efficiency
C) Better at productive efficiency and allocative efficiency
D) Better at productive efficiency and allocative efficiency