Which of the following terms describes the situation in which all resources are able to move to to highest-valued uses via voluntary exchange?
A) government intervention
B) a market failure
C) economic efficiency
D) an externality
Answer: C
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Which of the following is a category (degree) of inflation?
(a) Deflation. (b) Externally induced inflation. (c) Demand-Pull inflation. (d) Stagflation.
A tall latte in China costs 30 yuan. The same latte in the U.S. costs 4 dollars. If the exchange rate is 6.5 yuan per dollar then, the real exchange rate is
a. .867 so the good is more expensive in the U.S. b. .867 so the good is more expensive in China. c. 1.154 so the god is more expensive in the U.S. d. 1.154 so the good is more expensive in China.
Price discrimination is:
A. the practice of charging customers different prices for the same good. B. the process of customers choosing items based on price. C. the practice of charging customers the same price for a variety of similar goods. D. choosing which prices to charge for certain items.
To circumvent the problem of double marginalization:
A. transfer prices must be set that maximize the overall value of the firm rather than the profits of the upstream division. B. firms should vertically integrate. C. firms should engage in two-part pricing, unless it is possible to engage in either first-or second-degree price discrimination. D. None of the answers are correct.