ticin 19 Total surplus = Value to - Cost to vered ts out of 20 Efficient allocation of resources occurs where * surplus is maximized. ts out of In 21 A market failure is when the forces of supply and demand produce an * outcome. ts out of tian 22 A direct or positive relationship exists between a country's a. productivity and its standard of living- s out of O b. total population and its average citizen's income. O c. rate of population growth and its level of exports. O d. government spending and its population. in 23 A fundamental concept in economics is the idea of O a. poverty. s out of O b. scarcity. O c. banking. tian O d. money. 1 24 A perfectly inelastic demand implies that buyers would O a. increase their purchases by 100% when the price rises by 109%. s out of O b. purchase the same amount as before when the price rises by 10%. O c. decrease their purchases by 100%% when the price rises by 10%. d. increase their purchases by 109%when the price falls by 10%.15 Because of shortages, sellers must ration the goods among buyers. wereD Rationing mechanism includes: ints out of (be careful of spelling) Long estian D according to sellers' biases Allocation according to G policy. ticin 16 Markets are usually a good way to organize * activity. lot yet awered ints out of 10 estion lestion 17 Prices serve to balance Dt yet wered ints out of .DO jestian estion 18 On the diagram, * represent consumer surplus. Dt yet Tieswereo pints out of Price DO Flag 3.50 estia 3.00 2.50 A 2.00- 1.50 B 1.00 -Qty 25 50 75 100 125Jestion 1 1 at yet A price above the market price results in a wered ints out of A price below the market price results in a Haq estan easticin 12 16. If |ED |> 1 then t price will revenue. wered ints out of 17. If |ED |