Q3. According to the “invisible hand” principle, which of the following statements is least accurate? A) Efficient allocation of productive resources occurs through competition. B) Producers serve society’s interest by serving their own self-interest. C) The authority of the state, although not seen, must always be present in the market.
Q4. Consider the following two final consumer goods: Good W requires the inputs of raw material R and intermediate goods S and T.
Good X requires the inputs of raw material R and intermediate goods U and V. If demand for Good W increases and demand for Good X decreases, which of the following outcomes is least likely? A) More resources will be devoted to producing Good W and less to producing Good T. B) Some of raw material R will be diverted away from the producers of Good X. C) The price of Good U will decrease and the price of Good S will increase.
Q5. Which of the following statements regarding deadweight loss is least accurate? A) Deadweight loss from underproduction leads to a loss of producer surplus but not consumer surplus. B) An overproduction of goods can lead to a reduction in consumer surplus. C) Deadweight loss occurs when the quantity supplied does not maximize the sum of consumer and producer surplus.
Q6. Christine Dobbs is watching a public affairs television program on which one of the participants makes the following statements: Statement 1: A common resource is an obstacle to the efficient allocation of resources unless it generates external benefits. Statement 2: The idea of utilitarianism suggests that market allocation of resources does not maximize the value of an economy to all individuals. However, achieving the results that utilitarianism regards as optimal involves a loss of economic output. With respect to these statements: A) only one is correct. B) both are correct. C) both are incorrect. | 
发表于 2008-12-31 09:49
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