1) Inefficiency exists in an economy when a good is O not being consumed by buyers who value it most highly O not distributed fairly among buyers O not produced because buyers do not value it very highly O being produced with less than all available resources Question 2 1 pts Among the fundamental concepts in economics are: O Efficient Markets O Opportunity cost O Marginal analysis O Input-Output analysis Question .4) For the aggregate economy, income equals O expenditure equals GDP only if there is no depreciation O expenditure equals GDP O expenditure, but these are not generally equal to GDP O GDP, but expenditure is generally less than these Question 5 Which one of the following variables is not held constant along a given aggregate demand curve? O the price level O fiscal policy O real income O expectations about inflation Question 6) Two variables are positively related if O decreases in one are associated with increases in the other O increases in one are associated with increases in the other O increases in one are associated with decreases in the other O any change in one causes a decrease in the other Question 8 Suppose that the unemployment rate equals 3.5 percent and that the natural unemployment rate is 7 percent. We can conclude that O potential GDP equals real GDP O potential GDP is greater than real GDP O actual GDP is greater than potential GDP O potential GDP is less than real GDP Question 9 Why is unemployment not equal to zero at the full employment level of output? O due to unrealistic wage expectations O there is frictional unemployment when some workers are in between jobs as well as structural unemployment O there is cyclical unemployment driven by the economic cycle O it does not account for government workers Question 11 Which one of the following is an income flow from firms to households? O Loans O Payments for factor services O Payments for goods and services O Goods and services