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202. The price of a good will tend to rise when a. there is excess demand for the good. b. there is excess supply of the good. c. demand for the good decreases. d. the supply of the good increases. ANS: A PTS: 1 DIF: Easy NAT: BUSPROG: Analytic STA: DISC: Supply and demand TOP: How Market Prices are Determined: Supply and Demand Interact KEY: Bloom's: Knowledge 203. When economists say an activity is consistent with economic efficiency, they mean 204. If an economic action generates more costs than benefits, the action
205. When property rights are well defined and markets are competitive, the 206. When property rights are well defined and markets are competitive, a. the total gains from trade (the combined area of producer and consumer surplus) are maximized at the market equilibrium. b. the market equilibrium is consistent with economic efficiency in that all units creating more benefit than cost have been produced. c. the market will automatically move toward the price and quantity where the quantity supplied and the quantity demanded are in balance. d. all of the above are true. ANS: D PTS: 1 DIF: Challenging NAT: BUSPROG: Analytic STA: DISC: Equilibrium TOP: How Market Prices are Determined: Supply and Demand Interact KEY: Bloom's: Comprehension