If an economy is being "allocatively efficient," then that means the economy is:
A. maximizing the returns to factors of production.
B. using the least costly production techniques.
C. producing the goods and services most wanted by society.
D. fully employing all economic resources.
Answer: C
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Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2. At the Nash-Cournot equilibrium, the total quantity, Q, is
A) 30. B) 45. C) 60. D) 90.
A government-imposed restriction on the quantity of a good that can be imported is
A) an embargo. B) a protective tariff. C) a quota. D) a health restriction.
Employers rely on a job applicant's signals
a. because they are always an accurate indication of the applicant's skills b. because actual abilities are not observable prior to employment c. because actual abilities are not observable after the applicant is hired d. only when hiring someone for an entry-level position e. only when hiring someone who has a college degree
Which of the following statements best describes productive efficiency?
a. Productive efficiency occurs when as additional increments of resources are added to produce a good or service, the marginal benefit from those additional increments decline. b. Productive efficiency occurs when it is impossible to produce more of one good (or service) without decreasing the quantity produced of another good (or service). c. Productive efficiency occurs when a country can produce a good at a lower cost in terms of other goods or when a country has a lower opportunity cost of production. d. Productive efficiency occurs when the mix of goods being produced represents the mix that society most desires.