Equity and efficiency can be achieved simultaneously through competition. Indicate whether the statement is true or false ANSWER False. Equity involves value judgments and achieving it will usually result in lessened efficiency.
Date: September 9th, 2020
Most of the debates in the U.S. Congress center on A) efficiency concerns. B) equity concerns. C) both efficiency and equity equally. D) market inefficiency. ANSWER B
Date: September 9th, 2020
The end of slavery in the United States represented A) a large wealth transfer from the South to the North. B) a large wealth transfer from the future to the present. C) a large wealth transfer from Southern slave-holders to newly freed slaves. D) a nominal wealth transfer from Southern slave-holders to newly freed slaves. […]
Date: September 9th, 2020
Learning by doing will result in A) an upward sloping long-run average cost curve. B) a larger long-run marginal cost than long-run average cost. C) a rotation in the isocost curves. D) lower long-run costs than short-run costs. ANSWER D
Date: September 9th, 2020
Explain how a firm can have constant returns to scale in production and economies of scale in cost. What will be an ideal response? ANSWER A firm can have constant returns to scale in production at every output level. If the firm doubled all inputs the output would double. However, the firm may also […]
Date: September 9th, 2020
A social welfare function (SWF) A) depicts the preferences of the president of the country. B) combines various consumers’ utilities to provide a collective ranking of allocations. C) indicates the choices that are acceptable by most consumers. D) is the outcome of a majority voting decision rule. ANSWER B
Date: September 9th, 2020
If society were to maximize the utility of its best-off member, the final allocation would be A) perfect equity. B) on the contract curve. C) Pareto efficient. D) one in which one person gets everything. ANSWER D
Date: September 9th, 2020
If government chooses a policy that does not lead to a Pareto improvement, one may say that A) this policy creates only winners. B) this policy creates winners and losers. C) only poor people benefit from this policy. D) this policy only creates losers. ANSWER B
Date: September 9th, 2020
In the long run, the expansion path is A) horizontal. B) vertical. C) diagonal. D) Not enough information. ANSWER D
Date: September 9th, 2020
Comparing the distribution of wealth of the wealthiest 1% of the population in the United States before and after the recent Great Recession to what occurred before and after the Great Depression, A) the percentage of the wealth of the wealthiest 1% increased after the recent Great Recession, unlike what happened after the Great Depression. […]
Date: September 9th, 2020
