Economic efficiency is achieved
a. automatically in a capitalist economy
b. when every possible Pareto improvement is exploited
c. when all markets are monopolized
d. if income is fairly distributed
e. whenever a voluntary transaction takes place
B
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People debate whether or not the U.S. should allow for greater oil exploration in Northern Alaska. According to the economic way of thinking, the debate is rooted in
A) different perceptions about the additional benefits and the additional costs of oil exploration in Northern Alaska. B) a complete lack of appreciation of the value of wildlife and the ecology of Northern Alaska. C) a complete lack of appreciation of the value of oil in world affairs. D) politics rather than economics.
Airbus is an European jet airline producer. Indian Airlines wants to buy 23 Airbus planes from Airbus, due to increased demand for world travel. As a result, the
A) demand curve for euros shifts rightward. B) demand curve for euros shifts leftward. C) supply curve for euros shifts rightward. D) quantity demanded for euros decreases.
When an input represents a larger proportion of a firm's total costs, then
A) demand for the input will tends to be less elastic. B) the input demand will not vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) demand for the input will tends to be more elastic.
Which of the following is a liability for a bank?
a. U.S. government securities owned by the bank b. Deposits with the Fed c. Checkable deposits d. Consumer and business loans e. Building and furniture owned by the bank