Which of the following is true of productive efficiency?
a. It is a situation in which the marginal benefit from the consumption of a good declines as increments of resources are added to a certain purpose.
b. It is a situation in which it is impossible to produce more of one good without decreasing the quantity produced of another good.
c. It is a situation in which the mix of goods being produced represents the allocation that society most desires.
d. It is a situation in which costs that were incurred in the past cannot be recovered and thus do not affect current decisions.
b
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Which of the following would cause a short-run decrease in the quantity supplied of personal computers?
A) The price of CPUs decreases. B) The price of software decreases. C) The number of PC manufacturers decreases. D) The cost of manufacturing PCs decreases.
In recent decades labor markets in European countries like Italy and Spain have been
A) less regulated and the unemployment rates of the European countries have been higher than the United States. B) more highly regulated and the unemployment rates of the European countries have been lower than the United States. C) more highly regulated and the unemployment rates of the European countries have been higher than the United States. D) less regulated and the unemployment rates of the European countries have been lower than
One major difference between the aggregate supply curve and an individual supply curve is the aggregate supply curve represents:
A. goods and services sold rather than the total actually produced by each firm. B. production in an entire market rather than just one firm. C. goods and services produced and actually sold by each firm. D. production in the economy as a whole rather than just one good or service.
Figure 4.3 illustrates the demand for tacos. Assume that tacos are normal goods. An increase in income would bring about a movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D1.