A society is productive inefficient when

What will be an ideal response?


it does not produce the maximum amount of output with its given resources and technology.

Economics

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If the wage rate in a monopsonistic industry is $15, the marginal factor cost will be:

a. $0. b. $1. c. $15. d. greater than $15. e. less than $15.

Economics

The idea of the "invisible hand" tells us that individuals will pursue:

A. mutually beneficial trades with other individuals to maximize surplus. B. trades in which they will be the clear winner and the other will be a loser. C. the most equitable outcome possible. D. as few government policies as possible so the market can act freely.

Economics

Income rises after a charity gives poor families free livestock. The harvest that year was also particularly bountiful. The charity should take full credit for the observed increase in the standard of living

a. True b. False Indicate whether the statement is true or false

Economics

For a typical natural monopoly, average total cost is

a. rising, often because marginal costs are very large. b. rising, often because fixed costs are very large. c. declining, often because marginal costs are very large. d. declining, often because fixed costs are very large.

Economics