How do economists define efficiency? Elaborate
Economists define efficiency as the absence of waste. An efficient economy wastes none of its available resources, and produces the maximum amount of output that its technology permits. In fact, economists assume, unless there is evidence to the contrary, that the economy always operates on its production possibilities frontier rather than below it, since that operation would be inefficient.
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Suppose a monopolist faces the demand curve shown below. 
If you were to draw the monopolist's marginal revenue curve, it would:
A. intersect the horizontal axis at 35. B. intersect the vertical axis at $35. C. lie on top of the demand curve. D. have a slope equal to the reciprocal of the slope of the demand curve.
Which of the following might explain why the government would create a price floor for a certain good?
a. The equilibrium price that would result in the market would be considered too high b. The equilibrium price that would result in the market would be considered too low c. The equilibrium quantity that would result in the market would be considered too high d. The equilibrium quantity that would result in the market would be considered too low e. The market will never achieve equilibrium on its own
Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in supply and an increase in quantity demanded are represented by a movement from:
A. point a to point b. B. point a to point c. C. point d to point b. D. point c to point d.
Suppose the perfectly competitive equilibrium occurs such that too many units of the good are produced. This is an example of
A) marginal cost pricing. B) market failure. C) firms have not yet exited the industry. D) greedy business people behaving in an inappropriate manner.