Which of the following statements about the way markets allocate resources is most accurate from society's perspective?
A. Markets always fail to allocate resources properly, so we must rely on the government to determine the proper use of our resources.
B. The market may not always allocate resources in a way that is in society's best interest.
C. The market always allocates resources in the best way.
D. Resource allocation by markets may not be perfect, but it is always better than government allocation of resources.
Answer: B
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Use the following table to answer the question below. Jake's Production Possibilities ScheduleJane's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn01600801012020602080404030406020400800Who has the comparative advantage in the production of green beans?
A. Jake B. Jane C. Both D. Neither
The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D?
A) 30 cans of cola per chocolate bar B) 10 cans of cola per chocolate bar C) 3 cans of cola per chocolate bar D) 1/3 can of cola per chocolate bar
Which of the following is not included in the U.S. balance of payments?
a. U.S. aid to Indonesian tsunami victims. b. U.S. corporate gifts to families who were harmed by hurricanes. c. Gifts from parents residing in foreign countries and paid to students studying at U.S. colleges and universities. d. All of the above are included in the balance of payments.
Suppose that a firm operating in perfectly competitive market sells 400 units of output at a price of $4 each. Which of the following statements is correct? (i) Marginal revenue equals $4. (ii) Average revenue equals $100. (iii) Total revenue equals $1,600
a. (i) only b. (iii) only c. (i) and (iii) only d. (i), (ii), and (iii)