Which statement best defines efficiency?
a. when it becomes possible to benefit at least one party without imposing costs on others
b. when it is impossible to improve the situation of one party without imposing a cost on another
c. the amount that a seller is paid for a good minus the seller’s actual cost
d. the amount that individuals would have been willing to pay, minus the amount that they actually paid
b. when it is impossible to improve the situation of one party without imposing a cost on another
You might also like to view...
The advantage to a corporation of issuing bonds instead of stock is that
A. Bond prices do not fluctuate. B. The possibility of default is lower when bonds are issued. C. The owners do not have to make interest payments on the loan. D. The owners keep control of the company.
Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be
A) an excess quantity demanded equal to 100,000 gallons.
B) an excess quantity supplied equal to the distance BD.
C) an excess quantity supplied equal to the distance BF.
D) an excess quantity supplied equal to 100,000 gallons.
An institution that functions like a business but does not operate to generate profits:
a. nonprofit organization b. Stockholm Club c. stockholder enterprise d. cooperative franchise e. Pineapple Ring
The index most widely used by the government and the private sector to measure changes in the cost of living is the:
A. Producer Price Index. B. Consumer Price Index. C. the GDP deflator. D. the chain-weighted price index.