The most desirable combination of output attainable with existing resources, technology, and social values is known as the:

Group of answer choices

Optimal mix of production.

None of the Answers are Correct.

Efficient choice of production.

Efficient mix of output.

Optimal mix of output.

In a market economy, producers will produce the goods and services that:

Group of answer choices

Consumers demand.

Optimize producer utility.

None of the Answers are Correct.

Consumers need the most.

Consumers desire the most.

Resources are directed from one industry to another by:

Group of answer choices

None of the Answers are Correct

Market failure.

Changes in market prices.

Auction.

Government failure.

If production in the economy is efficient, then changes in market prices:

Group of answer choices

Have no effect on our position on the production possibilities curve.

Move us from a point below the production possibilities curve to a point on the production possibilities curve.

Move us along the perimeter of the production possibilities curve.

Move us to a point above the production possibilities curve.

The term market mechanism refers to (means):

Group of answer choices

Government laws and regulations concerning how the market should operate.

The use of market prices and sales to signal desired output.

Resource allocation based on consumer needs.

Resource allocation based on a production-possibilities curve.

None of the Answers are Correct.

Government intervention may be appropriate to correct market outcomes because of:

Group of answer choices

Private goods.

Externalities

Production possibilities.

All of the Answers are Correct.

None of the Answers are Correct.

When market failure occurs, the role of government is to:

Group of answer choices

Push market outcomes closer to the ideal.

Create a-n alternative to markets.

Eliminate markets.

Do nothing.

None of the Answers are Correct.

A private good:

Group of answer choices

Is consumed by one person and excludes consumption by others.

Experiences free riders.

Results in market failure when provided in markets characterized by laissez faire.

Is provided most efficiently by the government.

In economics, a public good:

Group of answer choices

Has social costs of production lower than private costs of production.

Cannot be denied to consumers who have not paid.

None of the Answers are Correct.

Is provided in an optimal amount by the market.

Is any good produced by the government.

The free-rider problem:

Group of answer choices

Arises from the ability to exclude an individual from the benefits of someone else's purchase.

Means that the market mechanism is the most efficient way to produce public goods.

None of the Answers are Correct.

Is a government failure resulting from consumption of private goods.

Reflects the inability to exclude an individual from the benefits of someone else's purchase.

If an individual demands a good, it means that he or she

Group of answer choices

Prefers the good to all other choices.

Must need the good.

Is willing and able to purchase the good at some price.

Has a strong desire for the good.

Which of the following isnota determinant of demand?

Group of answer choices

The price of other goods.

Desire for the good.

The cost of the factor inputs.

None of the Answers are Correct.

Income of the consumer.

Utility refers to the

Group of answer choices

Decrease in satisfaction as more of a good or service is consumed.

Willingness to buy specific quantities of a good or service at a particular price.

None of the Answers are Correct.

Additional satisfaction obtained from one more unit of a good or service.

Satisfaction obtained from a good or service.

Marginal utility is

Group of answer choices

None of the Answers are Correct.

The sum of the total utility of consuming a certain amount of a good.

The additional utility a consumer enjoys from the consumption of one more unit of a good.

Always negative or zero

The diminishing nature of total utility.

Total utility is

Group of answer choices

None of the Answers are Correct.

The additional utility from consuming one more unit of a good.

The sum of the marginal utilities from the consumption of good.

A function that always falls as a buyer enjoys more units of a good.

How much utility a seller gets from producing a good.

The marginal utility for a good is computed as

Group of answer choices

The change in total utility divided by the change in quantity.

Quantity divided by total utility.

None of the Answers are Correct.

Total utility divided by quantity.

The change in quantity divided by total utility.

The additional pleasure or satisfaction from a good declines as more of it is consumed in a given period. This is the definition of the

Group of answer choices

Law of diminishing marginal utility.

Law of diminishing total utility.

Total revenue rule.

Law of demandTotal revenue rule.

None of the Answers are Correct.

Marginal utility is the

Group of answer choices

None of the Answers are Correct.

Change in total utility obtained by selling one extra unit of a good or service.

Change in total utility obtained by consuming one extra unit of a good or service.

Change in total utility obtained by spending one extra dollar on a good or service.

When sellers price discriminate,

Group of answer choices

They are attempting to charge a price that is the maximum price each individual is willing to pay.

They are taking an illegal action.

They are trying to find a minimum price the individual is willing to pay

B. They are trying to pit one group of buyers against another.

Graphically, as a consumer buys more of a good, the marginal utility line will

Group of answer choices

Increase steadily and then decline.

Continuously decline if diminishing returns are present.

Follow the same shape as the total utility line.

None of the Answers are Correct.

Increase as more goods are consumed.

A production function shows the

Group of answer choices

None of the Answers are Correct.

Maximum output that can be produced with varying combinations of factor inputs.

Minimum amount of output that can be obtained from alternative combinations of inputs.

Maximum quantity of inputs required to produce a given quantity of output.

Output capacity of the entire economy.

Greater labor productivity means

Group of answer choices

None of the Answers are Correct.

Lower output per labor-hour.

Higher output per worker.

Higher labor cost per unit of output.

Lower output per worker.

Technical efficiency is achieved when a firm produces

Group of answer choices

Enough output to cover the opportunity cost of resources.

None of the Answers are Correct.

An amount less than or equal to the production function.

At an amount indicated by a point on the production function.

Below the opportunity cost for the resources it uses.

The short-run production function shows how output changes when

Group of answer choices

The fixed inputs change.

The quantity of land changes.

None of the Answers are Correct.

Technology changes.

The quantity of labor changes.

The change in total output associated with one additional unit of input is the

Group of answer choices

Average productivity.

Marginal cost.

Opportunity cost of the output.

Marginal physical product.

None of the Answers are Correct.

Ceteris paribus, the law of diminishing returns states that beyond some point, the

Group of answer choices

None of the Answers are Correct.

Output of any good increases as more of a variable input is used.

Marginal physical product of a factor of production diminishes as more of that factor is used.

Returns on stocks and bonds diminish with higher security prices.

Addition to total utility diminishes as more units of a good are consumed.

If anadditional unit of labor costs $20and has aMPP of 15 units of output, themarginal cost is

Hint: Know the Formula of Marginal Cost and Calculate.

Group of answer choices

$1.33

$300.00.

None of the Answers are Correct.

$0.75

$30.00

Economies of scale are reductions in average

Group of answer choices

Fixed cost resulting from improved technology and production efficiency.

Total cost that result from declining average fixed costs.

Fixed cost that result from reducing the firm's scale of operations.

Total cost that result from using operations of larger size.

None of the Answers are Correct.

Accounting costs and economic costs differ because

Group of answer choices

None of the Answers are Correct.

Economic costs include implicit costs and accounting costs do not.

Accounting costs include explicit costs and economic costs do not.

Economic costs include explicit costs and accounting costs do not.

Accounting costs include implicit costs and economic costs do not.

At any given rate of output, the difference between total cost and fixed cost is

Group of answer choices

Marginal cost.

None of the Answers are Correct.

Zero in the short run.

Variable cost.

Average variable cost.

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