ECON 2110 Clemson - Exam 3 | Actual
study set | Questions and verified study
solutions
When allocative efficiency occurs,
A) marginal benefit exceeds marginal cost by as much as possible.
B) we can simultaneously produce more of all goods.
C) technology must be increasing.
D) an economy produces the goods and services most highly valued.
E) marginal benefit exceeds marginal cost by some amount. - ANSW-D
The marginal benefit of a taco is measured by
A) the opportunity cost of producing another taco.
B) the amount of another good a person must give up to get one more taco.
C) a point on the PPF.
D) the price of the taco.
E) the amount of another good a person is willing to give up to get one more taco. - ANSW-E
The principle of decreasing marginal benefit explains why the marginal benefit curve
A) is upward sloping.
B) is downward sloping.
C) has an infinite slope.
D) is horizontal.
E) is vertical. - ANSW-B
The marginal benefit of the first hotdog consumed is ________ the marginal benefit of the fifth hot dog
consumed.
A) the inverse of
B) less than
C) greater than
D) equal to
E) equal to 5 times - ANSW-C
Marginal cost equals
A) all the opportunity cost of producing the amount of output.
, B) the opportunity cost of producing one more unit of output.
C) productive efficiency.
D) the profitability derived from producing another unit of output.
E) or exceeds the marginal benefit. - ANSW-B
The marginal cost curves slope upward because of the principle of
A) decreasing marginal benefits.
B) decreasing total benefit.
C) increasing marginal cost.
D) decreasing marginal cost.
E) increasing marginal benefits. - ANSW-C
7)We allocate resources efficiently when7)A)total benefit is greater than total cost.B)marginal benefit is
greater than marginal cost by as much as possible.C)marginal benefit is equal to marginal
cost.D)marginal cost is greater than marginal benefit.E)marginal benefit is greater than marginal cost by
any amount. - ANSW-C
For resource use to be allocatively efficient, when the marginal benefit of a slice of pizza exceeds the
marginal cost,
A) allocative efficiency is reached ONLY IF the marginal benefit exceeds the marginal cost by as much as
possible.
B) more slices of pizza should be produced.
C) fewer slices of pizza should be produced.
D) no more slices of pizza should be produced.
E) None of the above answers is correct. - ANSW-B
The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost
of providing manatee swimming tours. At 1 manatee swim per week, Kaley's marginal benefit is
________ and Scott's marginal cost is ________.
A)$40; $10
B)$90; $50
C)$40; $40
D)None of the above answers is correct. - ANSW-A
The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost
of providing manatee swimming tours. For Kaley and Scott, allocative efficiency is achieved at what
point?
A)A
B)B
C)C
study set | Questions and verified study
solutions
When allocative efficiency occurs,
A) marginal benefit exceeds marginal cost by as much as possible.
B) we can simultaneously produce more of all goods.
C) technology must be increasing.
D) an economy produces the goods and services most highly valued.
E) marginal benefit exceeds marginal cost by some amount. - ANSW-D
The marginal benefit of a taco is measured by
A) the opportunity cost of producing another taco.
B) the amount of another good a person must give up to get one more taco.
C) a point on the PPF.
D) the price of the taco.
E) the amount of another good a person is willing to give up to get one more taco. - ANSW-E
The principle of decreasing marginal benefit explains why the marginal benefit curve
A) is upward sloping.
B) is downward sloping.
C) has an infinite slope.
D) is horizontal.
E) is vertical. - ANSW-B
The marginal benefit of the first hotdog consumed is ________ the marginal benefit of the fifth hot dog
consumed.
A) the inverse of
B) less than
C) greater than
D) equal to
E) equal to 5 times - ANSW-C
Marginal cost equals
A) all the opportunity cost of producing the amount of output.
, B) the opportunity cost of producing one more unit of output.
C) productive efficiency.
D) the profitability derived from producing another unit of output.
E) or exceeds the marginal benefit. - ANSW-B
The marginal cost curves slope upward because of the principle of
A) decreasing marginal benefits.
B) decreasing total benefit.
C) increasing marginal cost.
D) decreasing marginal cost.
E) increasing marginal benefits. - ANSW-C
7)We allocate resources efficiently when7)A)total benefit is greater than total cost.B)marginal benefit is
greater than marginal cost by as much as possible.C)marginal benefit is equal to marginal
cost.D)marginal cost is greater than marginal benefit.E)marginal benefit is greater than marginal cost by
any amount. - ANSW-C
For resource use to be allocatively efficient, when the marginal benefit of a slice of pizza exceeds the
marginal cost,
A) allocative efficiency is reached ONLY IF the marginal benefit exceeds the marginal cost by as much as
possible.
B) more slices of pizza should be produced.
C) fewer slices of pizza should be produced.
D) no more slices of pizza should be produced.
E) None of the above answers is correct. - ANSW-B
The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost
of providing manatee swimming tours. At 1 manatee swim per week, Kaley's marginal benefit is
________ and Scott's marginal cost is ________.
A)$40; $10
B)$90; $50
C)$40; $40
D)None of the above answers is correct. - ANSW-A
The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost
of providing manatee swimming tours. For Kaley and Scott, allocative efficiency is achieved at what
point?
A)A
B)B
C)C
