Answer the following statement true (T) or false (F)
1) Producing a good in the least costly way is known as allocative efficiency.
2) A market that achieves productive efficiency is producing the quantity of goods most desired by
society.
3) A market that is achieving allocative efficiency must also be achieving productive efficiency.
4) A government tax per unit of output reduces supply.
1) F
2) F
3) T
4) T
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Logrolling is
A. a system used often at lumberjack contests. B. a system that will always lead to worthy projects getting funded. C. a system that involves the trading of votes. D. a system that generally involves double-peaked preferences.
Pair-wise majority voting ________ the criteria of an ideal voting system.
A. meets all of B. fails to meet all of C. fails to meet one of D. fails to meet two of
Any change in the volume of export or import by a small country will have no effect on its terms of trade.
Answer the following statement true (T) or false (F)
Given a linear demand curve, at which combination of price and marginal revenue (P, MR) is the price elasticity of demand greater than 1?
A. P = 15, MR = 8 B. P = 12, MR = 0 C. P = 8, MR = -2 D. P = 4, MR = -4