At the equilibrium price: A. quantity supplied may exceed quantity demanded or v
ID: 1115981 • Letter: A
Question
At the equilibrium price: A. quantity supplied may exceed quantity demanded or vice versa. B. there are no pressures on price to either rise or fall. C. there are forces that cause price to rise. D. there are forces that cause price to fall. 9. Allocative efficiency is concerned with: A. producing the combination of goods most desired by society. B. achieving the full employment of all available resources. C. producing every good with the least-cost combination of inputs. D. reducing the concavity of the production possibilities curve. 10. Over time, the equilibrium price of a gigabyte of computer memory has fallen while the equilibrium quantity purchased has increased. Based on this we can conclude that: A. decreases in the demand for computer memory have exceeded increases in supply. B. decreases in the supply of computer memory have exceeded increases in demand. C. increases in the demand for computer memory have exceeded increases in supply. D. increases in the supply of computer memory have exceeded increases in demand. 11. What two conditions must hold for a competitive market to produce efficient outcomes? A. Demand curves must reflect all costs of production, and supply curves must reflect consumers' full willingness to pay B. Supply curves must reflect all costs of production, and demand curves must reflect consumers' full willingness to pay C. Firms must minimize production costs, and consumers must minimize total expenditures. D. Firms must maximize profits, and consumers must all pay prices equal to their maximum willingnes 12. Nonrivalry and nonexcludability are the main characteristics of: A. consumption goods. B. capital goods. C. private goods. D. public goods. 13. Unlike a private good, a public good: A. has no opportunity costs. B. has benefits available to all, including nonpayers. C. produces no positive or negative externalities. D. is characterized by rivalry and excludabilityExplanation / Answer
(8) (B)
At equilibrium, quantity demanded equals quantit supplied and price is stable.
(9) (A)
Allocative efficiency is achieved when a firm prices its goods equal to its marginal cost, which is socially desirable.
(10) (D)
Increase in demand shifts demand curve right, increasing price and quantity. Increase in supply shifts supply curve right, decreasing price and increasing quantity. If Increase in supply > Increase in demand, price decreases and quantity increases.
(11) (B)
(12) (D)
Public goods are non-rival and non-excludable while Private goods are rival and excludable).
(13) (B)
NOTE: As per Chegg answering guideline, first 6 questions are answered.
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