Who answers the three key economic questions in a traditional economic system? O custom & tradition O individual producers and consumers O a central authority O government and individuals

To determine how much of a good to produce to achieve allocative efficiency, we O A. construct a production possibilities frontier and choose the midpoint. O B. must produce on the PPF and at the point where the marginal benefit exceeds by as much as possible the marginal cost of the good. OC. construct a production possibilities frontier and choose any point on it. O D. must produce on the PPF and at the point where the marginal benefit exceeds by any amount the marginal cost of the good. O E. must produce on the PPF and at the point where the marginal benefit and marginal cost of the good are equal.

The production possibility curve shows all the following except O a. Economic growth O b. The law of demand O c. The supply curve of 2 goods O d. The law of increasing opportunity cost O e. Inefficiency in production

a. Consider the following statement: "The market system is a profit-and-loss system." This statement is O false, because the market system does much more than provide profits and losses. O true, because consumers purchase only what they want, producers will earn profits. O true, because producer decisions are motivated by the attempt to earn profits. O false, because consumers purchase only what they want, producers will earn profits.

ciples of Microeconomics - Spring21 Which of the following is CORRECT? Select one: O a. If a firm is technologically efficient, it is always economically efficient. O b. If a firm is technologically efficient, it is always producing at the lowest costs of production. O c. If a firm is economically efficient, it is always technologically efficient. O d. None of these answers is correct. DUS PAGE NE

When a command economy is utilized to resolve economic questions regarding the allocation of resources, which of the following consequences results? a. Everyone will receive an equal share of the output produced. b. The preferences of individuals are of no importance. O c. Economic efficiency will be assured. Od. The role of markets will be replaced by political decision making.

QUESTION 19 Mohamed says that "gas prices are rising because there aren't enough oil refineries." Ahmed argues that "gas prices are rising because of the growing demand for gasoline from China and India." We can conclude that O A. Mohamed's statement is positive, but O B. Ahmed's statement is positive, but Ahmed's is normative. OC.Both statements are positive. D. Both Mohamed's is normative. statements are normative

QUESTION 1 Which of the following is an example of a microeconomic issue? O The government passes legislation that aims to improve the economy. O The unemployment rate is approximately 4%. O Aretailer decides to hire 1,000 new employees in the United States as part of its expansion program O The central bank engages in policy aimed at reducing inflation. QUESTION 2 Suppose a state aims to make it easier for people to purchase school supplies for children by exempting these purchases from sales taxes. Such programs are often called "sales tax holidays." identify which of the following would be considered an unintended consequence of this pollcy. An increase in prices by retailers expecting higher demand during the sales tax holiday. O An increase in purchanes just prior to and immediately following the sales tar holiday. O A large increase in net sales. O Asteep dedine in sales during the sales tax holiday.

The table sets out the marginal benefits that Sam and Nick receive from the town's street lighting What is the principle of diminishing marginal benefit? Which marginal benefit diminishes lastest Sam's, Nick's, or the society's? The principle of diminishing marginal benefit tells us that OA. the more firms that sell a gend the smaller is the marginal benefit to consumers OB. the more people that own a single unit of a good, the smaller is each person's marginal benefit OC. the more we have of any good the smaller is its marginal benefit OD. the less we have of any good, the smaller is its marginal beneit Of Nick, Sam, or society, marginal benefit decreases fastest for OA. Nick OB. Sam OC society Number of Sam street lights Marginal benefit Nick (dolars per street light) TO 12 2 9 3 6 4 4 3 0 5

Microeconomics Questions 7, 8, 9, and 10 (Showed in the Screenshot)