Economic efficiency is achieved
a. when all resources are fairly allocated
b. when an economy is producing the maximum possible amount of goods and services
c. when production or allocation of goods cannot be rearranged to make one person better off while harming no one else.
d. if production or allocation of goods cannot be rearranged to make at least one person better off
e. if production or allocation of goods cannot be rearranged in a way the benefits more people than it harms
C
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One major barrier to entry under pure monopoly arises from ________.
A. the availability of close substitutes for a product. B. the price taking ability of the monopoly. C. diseconomies of scale. D. the cost of the infrastructure needed to produce.
Exhibit 3-1 Market Demand
Suppose there are only three people in the economy: Jane, Harry, and Bob. The individual demand for corn for each of these consumers is given in Exhibit 3-1. The total quantity demanded of corn if the market price is $5 is
A. 3. B. 25. C. 17. D. 26.
Alan Krueger conducted a survey of fans at the 2001 Super Bowl who purchased tickets to the game for $325 or $400. Krueger found that (a) 94 percent of those surveyed would not have paid $3,000 for their tickets, and (b) 92 percent of those surveyed
would not have sold their tickets for $3,000. These results are an example of A) rational consumer behavior. B) the endowment effect. C) the fallacy of composition. D) the failure to ignore sunk costs.
A ________ occurs when a country's imports exceed its exports
A) budget surplus B) trade deficit C) trade surplus D) fiscal deficit