When a competitive market achieves allocative efficiency, it implies that:
A. The marginal benefit of having the product is greater than the marginal cost
B. The buyers are getting the maximum consumer surplus from the product
C. The combined consumer and producer surplus is maximized
D. The quantity demanded is lower than the quantity supplied
C. The combined consumer and producer surplus is maximized
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The most important factor in reversing the economic decline of 1929-1933 was that
A. the federal government finally balanced its budget. B. the stock market began to rise. C. people became more optimistic. D. the federal government began to spend a huge amount of money.
A production function:
A. defines the minimum amount of output that can be produced with inputs such as capital and labor. B. defines the average amount of output that can be produced with inputs such as capital and labor. C. is determined only by the expenditures on R&D. D. represents the technology available for turning inputs into output.
If all the world's resources were to magically increase one hundredfold, then:
A. people would still have to make trade-offs. B. scarcity would disappear. C. trade-offs would become unnecessary. D. economics would no longer be relevant.
Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. If Dawn proposed $6 million while Terry proposed $9 million, whose budget will be selected if everyone votes?
A. Dawn's B. Terry's C. It is a tie. D. The outcome cannot be predicted.