quiz 1 chapter 1 solutions

quiz 1 chapter 1 solutions - Self-Test Questions Chapter 1...

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Self-Test Questions Chapter 1 MULTIPLE CHOICE 1. Scarcity exists when a. there is less than an infinite amount of a resource or good. b. society can meet the wants of every individual. c. there is less of a good or resource available than people wish to have. d. the government fails to produce goods. ANS: C 2. When society requires that firms reduce pollution, there is a. a tradeoff because of reduced incomes to the firms' owners, workers, and customers. b. no tradeoff, since everyone benefits from reduced pollution. c. no tradeoff for society as a whole, since the cost of reducing pollution falls only on the firms affected by the requirements. d. a tradeoff only if some firms are forced to close. ANS: A 3. Which of the following is true? a. Efficiency refers to the size of the economic pie; equity refers to how the pie is divided. b. Fortunately, government policies are designed to promote both equity and efficiency. c. As long as the economic pie continually gets larger, no one will have to go hungry. d.
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This note was uploaded on 03/30/2011 for the course ECON 2200 taught by Professor N/a during the Fall '10 term at Algonquin College.

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quiz 1 chapter 1 solutions - Self-Test Questions Chapter 1...

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