An efficient economy is an economy
A. that distributes output equally among all consumers.
B. in which output is steady or growing and there is low inflation.
C. that produces what consumers demand and does so at the least possible cost.
D. in which there is a fair distribution of wealth.
Answer: C
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Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S1 (point C). Which of the following changes would cause the equilibrium to change to point B?
A) a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples B) an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples C) an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease D) a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples
The ability of factors to migrate abroad
A) reduces the severity of unemployment and the fall in the rate of return available to investors. B) increases the severity of unemployment and the fall in the rate of return available to investors. C) reduces the severity of unemployment but increases the fall in the rate of return available to investors. D) cannot change the severity of unemployment and the constant rate of return available to investors. E) reduces the migration of highly-skilled workers.
The Department of Justice and the Federal Trade Commission enforce antitrust laws.
Answer the following statement true (T) or false (F)
Most people will eliminate the F's and any D's that they can before reaching the 2.5 constraint, make an application to the world's income distribution using John Rawl's terms "veil of ignorance," "economic justice," and "poorest of the poor."
What will be an ideal response?