CourseCourseConceptConceptDocsDocuments

IB Economics HL 2.3.5 Allocative Efficiency Questions

Practise IB Economics HL 2.3.5 by explaining the price-equals-marginal-cost condition, efficient output and how interventions can reduce social surplus, using marked exam evidence.

Syllabus
First assessment 2022
Course
Economics HL
Level
HL

Exam points

  • Define allocative efficiency as the best allocation of resources in which social or community surplus is maximized.
  • Identify the allocatively efficient output where price or average revenue equals marginal cost.
  • Explain how subsidies or other interventions can move output away from allocative efficiency and reduce welfare.

No Questions Yet

Questions will appear here when available.