When goods and services are produced at the lowest possible cost, ________ occurs
A) allocative efficiency
B) productive efficiency
C) equity
D) efficient central planning
Answer: B
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One argument offered by economists for having a Social Security system is that if there were no Social Security, workers might
A. save too much. B. work too long. C. overestimate the value of retirement. D. decide to use welfare as a retirement income, pushing the costs off onto others.
Which of the following chain of events occurs when a tariff is imposed on a good?
A) Domestic prices fall, shifting the demand curve rightward, and consumers buy more of the good. B) Domestic prices fall, decreasing the domestic quantity supplied and increasing the quantity demanded. C) Domestic prices rise, shifting the domestic supply curve rightward. D) Domestic prices rise, shifting the demand curve leftward and the domestic supply curve rightward. E) Domestic prices rise, decreasing the quantity demanded and increasing the domestic quantity supplied.
Government participation in railroad construction was highest in
(a) New England. (b) the South. (c) the Midwest. (d) the Great Lakes Region.
The initial price of a cup of coffee is $1, and at that price, 400 cups are demanded. If the price falls to $0.90, the quantity demanded will increase to 500
a. Calculate the (arc) price elasticity of demand for coffee. b. Based on your answer, is the demand for coffee elastic or inelastic? c. Based on your answer to a., if the price of coffee is increased by 10%, what will happen to the revenues from coffee? Carefully explain how you know.