6. As long as the value of additional units of output exceed the opportunity cost of that output, _____. a)it will not be producedb) it likely will not be produced*c) it will be producedd) it is likely to be produced 7. Which of the below statements is true?
8. The Pareto optimality concept is _____. 9. Which of the following statements about economic efficiency is nottrue? 10. Points on the production possibility curve are a) inefficient.b) points of incomplete preferences.c) not producible.*d) Pareto efficient. 11. The efficient allocation of resources means the use with the_________*a) highest social value PPC B (3 RD CHOICE) C (2 ND CHOICE) D (1 ST CHOICE) A E
Use the diagram to answer questions 12 to 1612. From the diagram above, which points satisfies technical efficiency? 13. Which of the points is inefficient to produce? 14. Which of the points is not feasible to produce? a) A and Eb) B, C, and D*c) Ed) A 15. At what point will pareto optimality be achieved? 16. At what point is it efficient to produce? 17. The marginal social value curve slopes down ward because of*a) the law of diminishing marginal utility 18. A situation where a good has zero marginal social value implies that a) society esteem the good highlyb) society demands more of the good*c) society do not need the goodd) society demands less of the good
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