A market is said to achieve allocative efficiency when producer surplus is at its maximum level
a. True
b. False
Indicate whether the statement is true or false
False
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As an economy moves from point to point along its production possibilities curve, which one of the following variables changes?
A) the total amount of resources employed B) the level of technology C) the time frame under consideration D) the amount of each good or service produced
Wage discrimination means workers with equal productivity are paid unequal wages, or workers with unequal productivity are paid equal wages
a. True b. False Indicate whether the statement is true or false
Three basic decisions must be made by all economies. What are they?
a. How much will be produced; when will it be produced; who will produce it? b. What goods will be produced; how will goods be produced; for whom will goods be produced? c. What will be consumed; how will goods be consumed; for whom will goods be consumed? d. How will the opportunity cost principle be applied; if the law of comparative advantage will be utilized, how will it be utilized; will the production possibilities constraint apply?
A fair coin is flipped. If it lands heads the person receives $1.00. If it lands tails, the person receives $11.00. If the person is willing to pay $6.00 to take this gamble, they must be
a. risk-averse. b. risk-neutral. c. risk-preferring. d. either risk-neutral or risk-preferring (not risk-averse).