The question, "What is really more efficient?" could usefully be translated into the question:
A) "What is the best long-term solution?"
B) "What will best promote social welfare?"
C) "What will produce the most economic value?"
D) "Who should have the right to decide?"
E) "What will produce the most rapid rate of economic growth?"
D
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Increasing marginal returns means that as the firm expands its output, its
A) long-run average total cost increases. B) long-run average total cost decreases. C) short-run average total cost increases. D) short-run average total cost decreases.
The money-stock target is preferable when uncertainty is the result of unpredictable shifts in which of the following?
a. expectations in future profitability b. Residential construction investment c. the money multiplier d. Both a and b e. All of the above
Betty's Bakery bakes fresh bread every morning. Any bread not sold by the end of the day is thrown away. A loaf of bread costs Betty $2.00 to produce, and she prices loaves of bread at $3.50 per loaf. Suppose near the end of one day Betty still has 12 loaves of bread on hand. Which of the following is correct?
a. Betty should only sell the remaining bread for $3.50 per loaf since that is the regular price. b. Betty should only sell the remaining bread for $2.00 per loaf or more since that is what the bread costs to make. c. Betty should be willing to sell the remaining bread for any price above $0 per loaf since she will have to throw it away if she does not sell it for something. d. Betty should just throw the bread away and change the price of her bread starting tomorrow to make sure she sells all of her bread each day.
Rent seeking
A. often entails large opportunity costs. B. prevents waste of resources. C. often promotes fairness in distribution of resources. D. cannot occur in a planned economy.