Assume some gain and some lose as the result of a change. If we can demonstrate the value of the gains are less than the value of the losses, then we say the change is
A. unequivocally Pareto optimal.
B. potentially efficient.
C. inefficient.
D. technically efficient.
Answer: C
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Which of the following can result in job rationing?
i. minimum wage ii. union wage iii. diminishing returns A) i, ii, and iii B) i and ii C) iii only D) i only E) ii only
A five-cent deposit on beer bottles
A) provides a positive incentive because it rewards people for recycling. B) provides a negative incentive because it punishes people who do not recycle. C) is an irrational policy, because it fails to take into account incentives. D) is an irrational policy, because it fails to take into account self-interest.
Helen gives up the opportunity to bake 40 cakes for each room she paints; Josh can paint one room in the time it takes him to bake 60 cakes. The opportunity cost of a cake for Helen is
a. painting one room b. painting 1/40 of a room c. painting 1/60 of a room d. painting 2/3 of a room e. painting 3/2 of a room
A point that lies inside the production possibilities curve reflects:
a. a failure to achieve full employment. b. too many resources being allocated to the production of one good. c. an efficient use of resources. d. unattainable combinations of output.