Which of the following statements about economic efficiency is not true?
a. Economic efficiency is equivalent to Pareto optimality.
b. Economic efficiency can be determined normatively.
c. Economic efficiency is superior to equity.
d. Economic efficiency can be evaluated positively.
c
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Refer to Figure 3-5. At a price of $5,
A) there is a scarcity of 4 units. B) there is a surplus of 4 units. C) there is a shortage of 4 units. D) there is a shortage of 6 units.
Within the financial services industry, which of the following is an example of a financial institution?
A. Pension funds B. Thrifts C. Insurance companies D. All of these
Unusually good weather that improves crop production and a major oil discovery are both examples of a beneficial supply shock
Indicate whether the statement is true or false
Why are exports added to (rather than subtracted from) the other expenditure components to arrive at GDP using the expenditure method?
A. because exported goods are not valued properly, due to problems with the purchasing power parity index B. because exports account for those goods that were produced in the economy but that were not devoted to domestic consumption, used for domestic investment, or provided as government goods C. because exports have a higher profit margin for manufacturers than do similar products sold in domestic markets D. because it is only through exporting that we can generate jobs in our own economy