Use the table below to answer the following question.UnitsMaximum Willingness to PayMarket PriceMinimum Acceptable Price1$14$8$2212843108648885681064814At what level of output is allocative efficiency achieved?
A. 2
B. 3
C. 4
D. 5
Answer: C
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The economizing process (choosing from among alternatives to maximize benefits)
A) applies only to consumers. B) applies only to privately-owned firms. C) applies only to producers. D) is the same for producers as it is for consumers.
Which of the following does NOT help organize trade?
A) property rights B) markets C) the production possibilities frontier D) None of the above because all these answers given help organize trade.
If an economy wants to maintain monetary policy autonomy, then:
a. it can maintain a fixed exchange rate and international capital mobility. b. it can impose strict capital controls and maintain a fixed exchange rate. c. it can maintain capital mobility but not a fixed exchange rate. d. it can impose strict capital controls and maintain a fixed exchange rate or it can maintain capital mobility but not a fixed exchange rate.
In Figure 4.2, at quantities smaller than Q1:
A. total revenue is falling. B. price elasticity is greater than 1. C. price and total revenue are directly related. D. All of these