C1 Quiz (C)GRADE A Q&A
When economists develop models designed to explain the choices people make, they
generally assume that - (correct answer)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
answer)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 answer)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 answer)should not
Trade-offs force society to make choices, particularly when answering the following
three fundamental questions: - (correct answer)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 answer)Productive efficiency
Allocative efficiency
When economists develop models designed to explain the choices people make, they
generally assume that - (correct answer)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
answer)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 answer)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 answer)should not
Trade-offs force society to make choices, particularly when answering the following
three fundamental questions: - (correct answer)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 answer)Productive efficiency
Allocative efficiency
