Can a firm achieve technological efficiency without achieving economic efficiency?
What will be an ideal response?
Yes. Technological efficiency means achieving the most output possible from any given combination of inputs. There might, however, be a different combination of inputs that can produce the same quantity of output at a lower cost. Economic efficiency is attained when the lowest cost combination of inputs is chosen, and when that combination of inputs is used to produce the largest possible quantity of output.
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If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent, then the growth rate of real GDP per person is
A) 3 percent. B) 2 percent. C) 1 percent. D) -1 percent. E) 0 percent.
Marginal productivity theory would suggest that
A) all workers should be paid the same wage. B) higher productivity will increase the market wage of an individual. C) labor demand will have no impact on the wage paid. D) workers cannot do anything to improve their wage prospects for the future.
Courtney goes for an hour bike ride which yields a marginal utility of 8. She stops and gets an ice cream cone, and then rides her bike for another hour. We can say:
A. the utility gained from a second ice cream cone was more than a second hour of bike riding. B. the utility gained from the ice cream was more than 8. C. the utility gained from the ice cream was less than the second hour of bike riding. D. the utility gained from a third hour of biking would be less than the utility gained from the one ice cream.
The total debt includes amounts one government agency owes to another
a. True b. False