Resource use is allocatively efficient when
A) we produce the goods with the highest opportunity cost.
B) we produce the goods with the lowest opportunity cost.
C) we cannot produce more goods and services.
D) we produce the amount of the different goods we value most highly.
D
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Which of the following is true in an ultimatum game if more money is considered to be better than less?
A) The equilibrium outcome in an ultimatum game is equitable. B) The equilibrium outcome in an ultimatum game is socially efficient. C) The equilibrium in an ultimatum game is always a dominant strategy equilibrium. D) There is no unique equilibrium in an ultimatum game.
Review three methods that might achieve the efficient use of a common resource and explain the obstacles to efficiency
What will be an ideal response?
Which of these is true of the mercantilism policy? a. It accepts gold as a medium of exchange
b. It encourages free movement of labor and capital resources between nations. c. It emphasizes government control over the production of important goods and services. d. It emphasizes the importance of trade restrictions in achieving economic growth. e. It believes that a nation's economic vitality depends on its unemployment level.
Dumping occurs when a firm:
A. charges a higher price to a foreign market than either the price charged in its home market or the production costs. B. generates toxic waste when producing export goods and then dumps the waste in the ocean. C. stops selling to a foreign market due to excessive tariffs. D. charges a lower price to a foreign market than either the price charged in its home market or the production costs.