148. Multiple Choice: An economy is efficient if it is:
Question An economy is efficient if it is:
Answer possible to produce more of all goods and services.
149. Multiple Choice: If all of the opportunities to make s...
Question If all of the opportunities to make someone better off (without making someone else
worse off) have been exploited, an economy is
Answer equitable.
150. Multiple Choice: A trade-off between equity and effici…
Question A trade-off between equity and efficiency may exist because of all of the following
except that:
allocating resources fairly may cause inefficiency.
151. Multiple Choice: Economists say an economy is efficien...
Question Economists say an economy is efficient when:
Answer the problem of scarcity is eliminated.
output is distributed equitably.
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152. Multiple Choice: Economists believe that resources sho…
Question Economists believe that resources should be used as efficiently as possible to:
153. Multiple Choice: If an economy has not achieved effici…
Question If an economy has not achieved efficiency, there must exist ways to:
Answer increase opportunity costs.
154. Multiple Choice: Resources are being used efficiently ...
Question Resources are being used efficiently when:
Answer scarcity is no longer an issue.
155. Multiple Choice: Equity means that:
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Question Equity means that:
Answer everyone gets an efficient share of the goods and services produced.
156. Multiple Choice: Which of the following is not a reaso...
Question Which of the following is not a reason that markets usually lead to efficiency?
157. Multiple Choice: An increase in efficiency means that ...
Question An increase in efficiency means that an economy has:
Answer reduced its opportunity costs.
158. Multiple Choice: The trade-off between equity and effi...
Question The trade-off between equity and efficiency occurs because:
Answer the efficient allocation of resources is bad for business and industry.
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159. Multiple Choice: Economists define an efficient use of...
Question Economists define an efficient use of resources as a situation where:
160. Multiple Choice: In most cases, economic efficiency is…
Question In most cases, economic efficiency is achieved through:
161. Multiple Choice: When individuals act in their own sel...
Question When individuals act in their own self-interest:
Answer efficiency is always achieved.
162. Multiple Choice: An economy has achieved ________ if i...
Question An economy has achieved ________ if it ________ pass up any opportunities to
make some people better off without making others worse off.
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163. Multiple Choice: Which of the following statements is ...
Question Which of the following statements is not true?
Answer Economic efficiency exists when an economy realizes the maximum possible
gains from trade given the available resources.
164. Multiple Choice: If in the country of Equitania, 20% o...
Question If in the country of Equitania, 20% of the population receives 80% of the income,
and the remaining 80% of the population receives 20% of the income, then:
Answer this situation is definitely efficient.
165. Multiple Choice: The incentives built into the market ...
Question The incentives built into the market economy ensure that resources are put to good
use and that opportunities to make people better off are not wasted. This means
that:
Answer people usually are not selfish enough to exploit opportunities to make
themselves better off.
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166. Multiple Choice: When markets fail:
Question When markets fail:
167. Multiple Choice: Market failure may occur because:
Question Market failure may occur because:
168. Multiple Choice: When the nations that comprise the Or...
Question When the nations that comprise the Organization of Petroleum Exporting Countries
(OPEC) restrict the supply of oil to increase their profits, the oil market:
Answer achieves an efficient outcome because profits increase.
169. Multiple Choice: Although for smokers the marginal ben...
Question
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Although for smokers the marginal benefit from smoking may exceed the marginal
cost of smoking, the negative effects of second-hand smoke may increase the
marginal costs of smoking to society to a point where it exceeds that marginal
benefit to society. This is an example of:
170. Multiple Choice: Everyone benefits from street lightin...
Question Everyone benefits from street lighting, yet the marginal benefit to any one individual
usually falls short of the marginal cost. This is an example of:
Answer individual actions whose side effects are not properly taken into account by the
market.
171. Multiple Choice: At various times, the nations that co...
Question At various times, the nations that comprise the Organization of Petroleum
Exporting Countries (OPEC) have restricted the supply of oil to increase their
profits. This is an example of:
Answer individual actions whose side effects are not properly taken into account by the
market.
172. Multiple Choice: Market failure occurs when:
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Question Market failure occurs when:
Answer prices of essential goods such as gas become very high.
173. Multiple Choice: A market failure occurs when:
Question A market failure occurs when:
Answer some people are able to buy many more goods than other people are.
174. Multiple Choice: When markets don‘t achieve efficiency:
Question When markets don‘t achieve efficiency:
Answer they must achieve equity.
175. Multiple Choice: One parent picks up the child from da…
Question One parent picks up the child from day care while the other parent goes to the
grocery store and begins to make dinner. This is an example of which principle at
work?
Answer Markets move toward equilibrium.
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Markets usually lead to efficiency.
176. Multiple Choice: Which of the following principles und...
Question Which of the following principles underlies the interaction of individual choices?
Answer Resources are scarce.
177. Multiple Choice: It is cheaper to produce corn in Kans...
Question It is cheaper to produce corn in Kansas than in Death Valley, California because
corn needs a lot of water and moderate temperatures. This statement best
represents this economic concept:
Answer Resources are scarce.
178. Multiple Choice: In Thailand, the land, labor, and cap...
Question In Thailand, the land, labor, and capital in society are all used to exploit all
opportunities to make everyone better off. This statement best represents this
economic concept:
Answer Markets move toward equilibrium.
179. Multiple Choice: Which of the following is not one of ...
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Question Which of the following is not one of the five principles for understanding how
individual choices interact?
Answer There are gains from trade.
180. Multiple Choice: When a local factory closes, why does...
Question When a local factory closes, why does it spell bad news for the local restaurants?
Answer Sales taxes are likely to increase.
181. Multiple Choice: Which of the following demonstrates o...
Question Which of the following demonstrates one of the three principles of economy-wide
interactions?
Answer A student chooses to rent a movie with friends rather than study for an
economics quiz.
182. Multiple Choice: Sometimes the government spends more …
Question Sometimes the government spends more or less, depending on the needs of the
country. This statement best represents this economic concept:
Answer Resources should be used as efficiently as possible to achieve society‘s goals.
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183. Multiple Choice: Lena and Jess are roommates. Lena hat…
Question Lena and Jess are roommates. Lena hates to clean the bathroom. Jess will agree
to clean the bathroom only if Lena vacuums the living room. This statement best
represents this economic concept:
Answer The real cost of something is what you must give up to get it.
184. Multiple Choice: Nate and Dylan are brothers. They hav…
Question Nate and Dylan are brothers. They have to mow the lawn and clean their rooms
before they can go to the high school football game. Nate mows the lawn and
Dylan picks up the rooms, and they make it to the football game on time. This
statement best represents this economic concept:
Answer People usually exploit opportunities to make themselves better off.
185. Multiple Choice: You notice that when a new yoga class...
Question You notice that when a new yoga class is offered at the student recreation center
at a highly desirable time, some students from the other yoga classes go to the
new class instead. This statement best represents this economic concept:
Answer Resources are scarce.
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