Question 1

A point on the utility possibility frontier is

Accepted Answer

A)  Inefficient 
B)  Impossible 
C)  Efficient 
D)  Inefficient and Impossible 
A)  Inefficient 
B)  Impossible 
C)  Efficient 
D)  Inefficient and Impossible

Question 2

The marginal rate of transformation from good X to good Y

Accepted Answer

A)  Is the additional amount of X that can be produced by sacrificing one unit of Y 
B)  Is the ratio of a firm's marginal products 
C)  Is the additional amount of Y that can be consumed by sacrificing one unit of X 
D)  Is the ratio of a firm's marginal costs 
A)  Is the additional amount of X that can be produced by sacrificing one unit of Y 
B)  Is the ratio of a firm's marginal products 
C)  Is the additional amount of Y that can be consumed by sacrificing one unit of X 
D)  Is the ratio of a firm's marginal costs

Question 3

An allocation of resources is Pareto efficient if it is

Accepted Answer

A)  Possible to make at least one consumer better off without making someone else worse off 
B)  Possible to make all consumers better off 
C)  Impossible to make any consumer better off without making someone else worse off 
D)  Impossible to make any consumer better off without making everyone worse off 
A)  Possible to make at least one consumer better off without making someone else worse off 
B)  Possible to make all consumers better off 
C)  Impossible to make any consumer better off without making someone else worse off 
D)  Impossible to make any consumer better off without making everyone worse off

Question 4

A market-clearing curve for a good

Accepted Answer

A)  Shows the quantities supplied and demanded for a particular product 
B)  Shows the combinations of prices, both for that good and for other related goods, that bring supply and demand for the good into balance 
C)  Shows the quantities supplied and demanded for all goods 
D)  Illustrates equilibrium in a particular market 
A)  Shows the quantities supplied and demanded for a particular product 
B)  Shows the combinations of prices, both for that good and for other related goods, that bring supply and demand for the good into balance 
C)  Shows the quantities supplied and demanded for all goods 
D)  Illustrates equilibrium in a particular market

Question 5

According to the principle of egalitarianism

Accepted Answer

A)  Society should place equal weight on the well-being of every individual 
B)  Society should place all weight on the well-being of its worst-off member 
C)  Society should place all weight on the well-being of its best-off member 
D)  Equal division of society's resources among all members of the population is the most equitable outcome 
A)  Society should place equal weight on the well-being of every individual 
B)  Society should place all weight on the well-being of its worst-off member 
C)  Society should place all weight on the well-being of its best-off member 
D)  Equal division of society's resources among all members of the population is the most equitable outcome

Question 6

The most commonly used notion of economic efficiency originated in the writings of

Accepted Answer

A)  John Nash 
B)  Kenneth Arrow 
C)  Gerard Debreu 
D)  Vilfredo Pareto 
A)  John Nash 
B)  Kenneth Arrow 
C)  Gerard Debreu 
D)  Vilfredo Pareto

Question 7

Suppose milk and cereal are compliments and the demand for milk is   ,where   stands for millions of gallons of milk demanded,   stands for the price of milk and   stands for the price of cereal.The supply of milk is   ,where   stands for millions of gallons of milk supplied.The demand and supply of cereal are   and   ,respectively,where   stands for millions of boxes of cereal demanded and   stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.The new general equilibrium price of milk is

Accepted Answer

A)  $2.37 
B)  $4.37 
C)  $0.37 
D)  $3.39 
A)  $2.37 
B)  $4.37 
C)  $0.37 
D)  $3.39

Question 8

A point outside of the production possibility frontier is

Accepted Answer

A)  Inefficient 
B)  Impossible 
C)  Efficient 
D)  Inefficient and Impossible 
A)  Inefficient 
B)  Impossible 
C)  Efficient 
D)  Inefficient and Impossible

Question 9

Compare and contrast the principles of utilitarianism,Rawlsianism and egalitarianism.Discuss the assumptions of each and the difficulties societies might face while trying to conform to them.

Accepted Answer

Utilitarianism,Rawlsianism and egalitari

Question 10

A point inside the utility possibility frontier is

Accepted Answer

A)  Inefficient 
B)  Impossible 
C)  Efficient 
D)  Inefficient and Impossible 
A)  Inefficient 
B)  Impossible 
C)  Efficient 
D)  Inefficient and Impossible

Question 11

Suppose milk and cereal are compliments and the demand for milk is   ,where   stands for millions of gallons of milk demanded,   stands for the price of milk and   stands for the price of cereal.The supply of milk is   ,where   stands for millions of gallons of milk supplied.The demand and supply of cereal are   and   ,respectively,where   stands for millions of boxes of cereal demanded and   stands for millions of boxes of cereal supplied.Solve for the price of cereal in terms of the price of milk.

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 12

A market failure

Accepted Answer

A)  Is a source of inefficiency in an imperfectly competitive economy 
B)  May not be corrected by government intervention 
C)  Cannot be corrected 
D)  May be corrected by self-selection 
A)  Is a source of inefficiency in an imperfectly competitive economy 
B)  May not be corrected by government intervention 
C)  Cannot be corrected 
D)  May be corrected by self-selection

A point on the utility possibility frontier is

The marginal rate of transformation from good X to good Y

An allocation of resources is Pareto efficient if it is

A market-clearing curve for a good

According to the principle of egalitarianism

The most commonly used notion of economic efficiency originated in the writings of

A point outside of the production possibility frontier is

Compare and contrast the principles of utilitarianism,Rawlsianism and egalitarianism.Discuss the assumptions of each and the difficulties societies might face while trying to conform to them.

A point inside the utility possibility frontier is

A market failure

Introduction

Supply and Demand3

Balancing Benefits and Costs

Principles and Preferences

Constraints, Choices, and Demand

Rom Demand to Welfare

Technology and Production

Cost

Rofit Maximization

Choices Involving Time

Choices Involving Risk

Choices Involving Strategy

Behavioral Economics

Equilibrium and Efficiency

Market Intervention

Monopoly

Pricing Policies

Oligopoly

Externalities and Public Goods

Filters

Exam 16: General Equilibrium, Efficiency, and Equity

A point on the utility possibility frontier is

The marginal rate of transformation from good X to good Y

An allocation of resources is Pareto efficient if it is

A market-clearing curve for a good

According to the principle of egalitarianism

The most commonly used notion of economic efficiency originated in the writings of

A point outside of the production possibility frontier is

Compare and contrast the principles of utilitarianism,Rawlsianism and egalitarianism.Discuss the assumptions of each and the difficulties societies might face while trying to conform to them.

A point inside the utility possibility frontier is

A market failure

Introduction

Supply and Demand3

Balancing Benefits and Costs

Principles and Preferences

Constraints, Choices, and Demand

Rom Demand to Welfare

Technology and Production

Cost

Rofit Maximization

Choices Involving Time

Choices Involving Risk

Choices Involving Strategy

Behavioral Economics

Equilibrium and Efficiency

Market Intervention

Monopoly

Pricing Policies

Oligopoly

Externalities and Public Goods

Filters