C1 UPDATED KEY Questions And Correct
Answers
When economists develop models designed to explain the choices people make, they generally assume
that - CORRECT ANSWERS People are rational
What goods and services will be produces, how do the goods and services will be produced, and who will
receive the goods and services are determined: - CORRECT ANSWERS in centrally planned
economics by the government
in market economics by the decisions of households and firms interacting in markets
(Both a and b are true)
Economics assumes people and firms - CORRECT ANSWERS use all available information to
achieve their goals, respond to incentives, and make decisions by comparing marginal benefits with
marginal costs.
Given the changes to Medicare, if the marginal benefit of offering an additional bed is $1,000 and the
marginal cost is $9,000 per bed, then the corporation __________________ offer additional beds -
CORRECT ANSWERS should not
Trade-offs force society to make choices, particularly when answering the following three fundamental
questions: - CORRECT ANSWERS One, what goods and services will be produced?
Two, how will the goods and services be produces?
Three, who will receive the goods and services produces?
_________ occurs when a good or service is produces at the lowest possible cost. __________ occurs
when production is in accordance with customer preferences. - CORRECT ANSWERS Productive
efficiency
Allocative efficiency
Answers
When economists develop models designed to explain the choices people make, they generally assume
that - CORRECT ANSWERS People are rational
What goods and services will be produces, how do the goods and services will be produced, and who will
receive the goods and services are determined: - CORRECT ANSWERS in centrally planned
economics by the government
in market economics by the decisions of households and firms interacting in markets
(Both a and b are true)
Economics assumes people and firms - CORRECT ANSWERS use all available information to
achieve their goals, respond to incentives, and make decisions by comparing marginal benefits with
marginal costs.
Given the changes to Medicare, if the marginal benefit of offering an additional bed is $1,000 and the
marginal cost is $9,000 per bed, then the corporation __________________ offer additional beds -
CORRECT ANSWERS should not
Trade-offs force society to make choices, particularly when answering the following three fundamental
questions: - CORRECT ANSWERS One, what goods and services will be produced?
Two, how will the goods and services be produces?
Three, who will receive the goods and services produces?
_________ occurs when a good or service is produces at the lowest possible cost. __________ occurs
when production is in accordance with customer preferences. - CORRECT ANSWERS Productive
efficiency
Allocative efficiency
