When an economy achieves economic efficiency, it:
A. is beyond a Pareto optimal position.
B. is at a Pareto optimal position.
C. may or may not be at a Pareto optimal position.
D. is below a Pareto optimal position.
Answer: B
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true?
A) If the price of pecans is $3 producers will sell 12,000 pounds of pecans but this output will be economically inefficient. B) If the price of pecans is $9 consumers will purchase more than the economically efficient output. C) Both 4,000 pounds and 12,000 pounds are economically inefficient rates of output. D) If the price of pecans is $3 the output will be economically efficient but there will be a deadweight loss.
What most accurately describes the implementation of the New Deal?
a. It was implemented in two phases over the course of about eight years. b. Its major reforms were implemented in the first 100 days of Franklin Roosevelt's Presidency. c. The first elements of the New Deal that were implemented were the most politically liberal. d. Most of the reforms were temporary and were phased out by World War II.
The demand for capital is
a. directly related to the interest rate. b. inversely related to the interest rate. c. unrelated to the interest rate. d. first falls, and then rises, in relation to the interest rate.
If the government imposes a price floor that is higher than the market clearing price, then
A) consumer surplus will increase while producer surplus will decrease. B) consumer surplus will decrease while producer surplus will increase. C) both consumer surplus and producer surplus will decrease. D) both consumer surplus and producer surplus will increase.