Warheads 1000 800 600 400 200 100 200 300 400 500 600 700 Units of Medical Care 7. Refer to the figure above. Which of the following is true given the production possibilities shown? A. Point C is more efficient than Point B because at Point C the opportunity cost of another warhead is lower than at Point B. B. Point B is the most efficient feasible point because it represents specialization in warheads. C. Point F is the most efficient feasible point because it represents specialization in medical care. D. Points B, C, and E are equally efficient. 8. Which of the following is NOT a characteristic of a market in equilibrium? A. Excess supply is zero. B. All consumers are able to purchase as much as they wish. C. Excess demand is zero. D. The equilibrium price is stable, i.e., there is no pressure for it to change. 9. You have noticed that there is a persistent shortage of teachers in an inner-city school district in your city. Based on this observation, you suspect that A. The wage for teachers at those schools is higher than at other schools in the city. B. The wage for teachers at those schools is lower than the equilibrium wage. C. There is an excess supply of teachers. D. The reservation price among teachers is lower than for other professions.
Warheads 1000 800 600 400 200 100 200 300 400 500 600 700 Units of Medical Care 7. Refer to the figure above. Which of the following is true given the production possibilities shown? A. Point C is more efficient than Point B because at Point C the opportunity cost of another warhead is lower than at Point B. B. Point B is the most efficient feasible point because it represents specialization in warheads. C. Point F is the most efficient feasible point because it represents specialization in medical care. D. Points B, C, and E are equally efficient. 8. Which of the following is NOT a characteristic of a market in equilibrium? A. Excess supply is zero. B. All consumers are able to purchase as much as they wish. C. Excess demand is zero. D. The equilibrium price is stable, i.e., there is no pressure for it to change. 9. You have noticed that there is a persistent shortage of teachers in an inner-city school district in your city. Based on this observation, you suspect that A. The wage for teachers at those schools is higher than at other schools in the city. B. The wage for teachers at those schools is lower than the equilibrium wage. C. There is an excess supply of teachers. D. The reservation price among teachers is lower than for other professions.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Warheads
1000
800
600
400
200
100 200 300 400 500
600 700
Units of Medical Care
7. Refer to the figure above. Which of the following is true given the production possibilities
shown?
A. Point C is more efficient than Point B because at Point C the opportunity cost of another
warhead is lower than at Point B.
B. Point B is the most efficient feasible point because it represents specialization in warheads.
C. Point F is the most efficient feasible point because it represents specialization in medical care.
D. Points B, C, and E are equally efficient.
8. Which of the following is NOT a characteristic of a market in equilibrium?
A. Excess supply is zero.
B. All consumers are able to purchase as much as they wish.
C. Excess demand is zero.
D. The equilibrium price is stable, i.e., there is no pressure for it to change.
9. You have noticed that there is a persistent shortage of teachers in an inner-city school district in
your city. Based on this observation, you suspect that
A. The wage for teachers at those schools is higher than at other schools in the city.
B. The wage for teachers at those schools is lower than the equilibrium wage.
C. There is an excess supply of teachers.
D. The reservation price among teachers is lower than for other professions.
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