Question 35 Prices allocate a market economy's scarce...

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14-the-pricing-system-consider-the-market-for-hamburgers-in-an-economy-where-the-market-equilibrium-is-characterized-by-quantity-of-hamburgers-of-50-million-and-price-of-500-per-hamburger-su-66589

14. The pricing system Consider the market for hamburgers in an economy where the market equilibrium is characterized by a quantity of hamburgers of 50 million and a price of $5.00 per hamburger. Suppose that currently 80 million hamburgers are being produced and sold at a price of $2.50. This outcome in the market for hamburgers is economically inefficient because: The opportunity cost of producing the last hamburger equals the marginal benefit of consumption. Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers. Which of the following must be true for the market to be able to achieve an efficient outcome? Check all that apply. Every economic player works selflessly to promote the social interest. Private property rights are well-defined and enforced. A central planner allocates limited resources according to the needs of the people. Evaluate the following statement: True or False: Prices tell entrepreneurs which areas of the economy they may profitably expand into. True False Evaluate the following statement: True or False: Good's market price communicates important information to decision-makers in the economy. True False

Azat N.

32. If a change in price results in no change in quantity demanded, then demand is a. a.Elastic b.Perfectly elastic c.Perfectly inelastic d. inelastic 33. When the government chooses to use resources to build a dam, those resources are no longer available to build a highway. This is illustrates the concept of a.Macroeconomics b. Rational choice C. Optimizing d. Opportunity cost 34. Which of the following could shift the demand curve for grape jelly to the right? a.An increase in income b. decrease in the price of strawberry preserves, a substitute c. A decrease in the price of peanut butter, a complement d. A fall in population 35. When the marginal product of labour is greater than the average product of labour, the average product of labour is increasing b) the marginal product of labour is increasing c) the total product curve is negatively sloped d) the firm is experiencing diminishing returns 36. The author of An Inquiry into the Nature and Causes of the Wealth of Nations is a. John M. Keynes. b. Alan Greenspan. C. d. Adam Smith Alfred Marshall. 37. A shortage will exist if a. b. The price is above equilibrium The price is below equilibrium There are not enough producers There are not enough consumers e. Demand falls 38. Which of the following statements best describes the problem of the firm? a. To maximize revenue b. To maximize costs whiles minimizing revenues To maximize profits To minimize costs 39. The problem of scarcity a. b. Exists only in economies that rely on the market mechanism Exists only in economies that rely on the command mechanism C. Exists in all economies d. Means that at least some prices are too high e. Can be solved by economists 40. Suppose we observe both an increase in the price of good A and an increase in the quantity of good A traded. Which of the following is a likely explanation? a. The law of demand is violated b. The law of supply is violated c.The demand for A has increased d.The supply of A has increased e.The supply of A has decreased

Donna D.

32. If a change in price results in no change in quantity demanded, then demand is a. a.Elastic b.Perfectly elastic c.Perfectly inelastic d. inelastic 33. When the government chooses to use resources to build a dam, those resources are no longer available to build a highway. This is illustrates the concept of a.Macroeconomics b. Rational choice C. Optimizing d. Opportunity cost 34. Which of the following could shift the demand curve for grape jelly to the right? a.An increase in income b. decrease in the price of strawberry preserves, a substitute c. A decrease in the price of peanut butter, a complement d. A fall in population 35. When the marginal product of labour is greater than the average product of labour, the average product of labour is increasing b) the marginal product of labour is increasing c) the total product curve is negatively sloped d) the firm is experiencing diminishing returns 36. The author of An Inquiry into the Nature and Causes of the Wealth of Nations is a. John M. Keynes. b. Alan Greenspan. C. Adam Smith d. Alfred Marshall. 37. A shortage will exist if a. The price is above equilibrium b. The price is below equilibrium c. There are not enough producers d. There are not enough consumers e. Demand falls 38. Which of the following statements best describes the problem of the firm? a. To maximize revenue b. To maximize costs whiles minimizing revenues c. To maximize profits d. To minimize costs 39. The problem of scarcity a. Exists only in economies that rely on the market mechanism b. Exists only in economies that rely on the command mechanism c. Exists in all economies d. Means that at least some prices are too high e. Can be solved by economists 40. Suppose we observe both an increase in the price of good A and an increase in the quantity of good A traded. Which of the following is a likely explanation? a. The law of demand is violated b. The law of supply is violated c. The demand for A has increased d. The supply of A has increased e. The supply of A has decreased

Donna D.

Transcript

0:00 Hello.

00:03 In the first question is given that the market outcome for hamburgers is economically inefficient because of what? so let's answer using all available answer options.

00:21 The first one a opportunity cost of producing the last hamburger equals the marginal benefit of consumption.

00:27 It's not correct it's not about utility maximization.

00:31 A is not correct.

00:33 B, some hamburgers that are, oh sorry, some hamburgers produced incur opportunity cost of production that exceed their value or marginal benefit to consumers.

00:56 And this one is the correct answer.

01:00 It's exactly true.

01:02 So the second answer is the b is the correct answer.

01:10 The second question is which of the following must be true for market to be able to achieve efficient outcome? check all that apply.

01:21 Let's start with a.

01:22 Every economic player works selflessly to promote the social interest...

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Question 35 Prices allocate a market economy's scarce resources. O True O False Previous

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