Unformatted text preview: the same amount, it is less
efficient firms will produce more that they should
38. With respect to the allocation of public goods the market fails
B) False Version 1 Page 8 39. "Competitive markets achieve efficiency." Choose the answer that is both correct and
A) The statement is too strong. Competitive markets are often efficient, but there are
B) This statement is true and is the foundation for our belief in the supremacy of the a
definition of competitive market
C) Economics professors often say this.
D) This statement is false.
40. When production in a society is efficient, it is still often possible to make some
members of society better off, without making any other members worse off.
41. Willy can only produce apples and carrots. Willy's production-possibilities frontier can
be represented with the function C=20-3A where C is the number of carrots he produces
and A is the number of apples he produces. For Willy, the opportunity cost of producing
a carrot is ___ and the opportunity cost of producing an apple is ___
slope= opp cost
A) 1/3 apple, 3 carrots
slope= rise/ run
B) 3 apples, 3 carrots
C) 1 carrot, 2 apples
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This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.
- Fall '07