The most important way in which inefficiency occurs is
A. producing more military goods instead of civilian goods.
B. limiting economic growth by limiting capital spending.
C. unemployment of labor and other resources.
D. producing outside the production possibilities frontier.
E. All of the responses are correct.
Answer: C
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Refer to Figure 11-4. Suppose the economy gains more capital per hour worked and experiences technological change. This is shown in the figure above by the movement from
A) A to D. B) E to B to D. C) A to B to C. D) A to E.
A firm's price-cost margin:
A. is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price. B. is the amount by which its marginal cost exceeds its average cost. C. is the amount by which its average cost exceeds its marginal cost. D. is the value of its profit.
If Happy Chickens sells its eggs only in 12 carton packages, this is an example of ________.
A) linear pricing B) two-part pricing C) commodity bundling D) an all-or-nothing offer
Suppose the U.S. government is auctioning the rights to mine for gold in a government-owned region on the West coast. Gold has been found in areas close to the region to be auctioned and gold has a fixed market price. The value of the rights to mine for gold in this region is an example of ________.
A) a common value B) an independent private value C) a correlated value D) a public value