From the standpoint of economic efficiency, competitive markets provide:
A. less of a public good than would be efficient.
B. more of a public good than would be efficient.
C. exactly the amount of a public good that is efficient.
D. an efficient amount but at a higher cost.
Answer: A
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A competitive equilibrium is Pareto-efficient because at the competitive equilibrium,
A) prices have been allowed to adjust. B) there are no further gains from trade. C) the final outcome is different from the original inefficient endowment. D) all members of society can be made better off.
The extent to which a firm is viewed by consumers as being a monopoly depends primarily on
a. how the government defines a monopoly b. whether they believe there are close substitutes for the good it produces c. the level of profits earned by the firm d. the difference between price and marginal cost of the good it produces e. the size of the firm
Investing in risky assets in the hope of earning profits is called speculation
a. True b. False Indicate whether the statement is true or false
Which one of the following would be classified as employed?
a. a parent who works 50 to 60 hours per week caring for family members b. an construction worker vacationing in Florida who is on layoff due to bad weather conditions in his home state c. a 21-year-old full-time college student d. a 17-year-old high school student who works a newspaper route six hours per week