1. If a country cannot produce more of one good without producing less of another good that...
Question:
1. If a country cannot produce more of one good without producing less of another good that people value more highly, then:
a. resource use is efficient
b. the resources used have the highest possible value
c. the opportunity cost is the lowest possible
d. resource use is inefficient
2. The value of one more unit of a good or service is its
a. Total benefit
b. marginal benefit
c. marginal cost
d. efficient benefit
3. We are producing the efficient quantity of pizza when its marginal benefit _________________________ its marginal cost
a. Equals
b. Is greater than or equal to
c. Is less than
d. Is greater than
4. Consumer surplus is the ____________________________.
a. price paid for the tub
b. maximum price that people are willing to pay for it
c. marginal benefit from consuming it
d. price paid for the tub plus the consumer surplus from it
5. Producer surplus is _____________________________.
a. The price of the good times the quantity sold
b. Greater than the consumer surplus
c. The price of the good subtracted from the value of the good
d. Revenue minus the opportunity cost of producing a good
6. A minimum wage _______________________.
a. Changes the demand for labour
b. Is an effective way of increasing employment
c. Is a price ceiling in the labour market
d. Is a price floor in the labour market
7. An effective price ceiling on a good or service ________________________.
a. Occurs only in the market for rental housing
b. Creates a shortage of the good or service
c. Increases the price of the good or service
d. Benefits everyone who plans to buy the good or service
8. If the government imposes a price ceiling in the market for rental housing but does not enforce it, then the actual quantity of housing rented will be close to the unregulated equilibrium quantity because ___________________.
a. There are many high-rise apartment buildings
b. The supply of rental housing is perfectly elastic
c. People will undertake search activity
d. A black market will exist
9. Suppose the government imposes a price ceiling on staplers. When the quantity demanded of staplers exceeds the quantity supplied, ____________________________.
a. The supply of staplers will increase
b. The price of a stapler will fall
c. the demand for staplers will decrease
d. There is incentive for students to undertake search activity
10. The _________ elastic ___________ the good, the smaller is the deadweight loss created by taxing the good.
a. More; the supply of
b. Less; either the supply of or demand for
c. More; either the supply of or demand for
d. More; the demand for
Expert Answer:
1 A This satisfies pareto optimality that resources are efficiently utilized if it is not possible to produce more of one good without producing less of another good Production will be along PPC 2 B B... View the full answer
