1.2

productive efficiency means that

a good or service is produced as quickly as possible

if a firm is productively and electively efficient, it earns _____ if it is not, it _____

a profit, suffers a loss

what is the actual cost and also the opportunity cost of distributing the tickets this way?

actives, cost, travel-all of the above

when does allocative efficiency occur?

allocative efficiency occurs when production is in accordance with consumer preferences

allocative efficiency means that

every good or service is produced up to the point where marginal benefit is equal to the marginal cost

in a market system, what determines how goods and services will be produced

firms determine how goods and serves will be produced

Centrally planned economies allocate resources based on decisions by _____ while market economies answer these questions through decisions made by

government, households and firms

scarcity implies that every society and every individual face trade-offs because scarcity means that

human wants are greater than what available resources can produce

poor-this attitude

ignores the fact that the cost of helping that one person has an opportunity cost of what those funds could have been used for the help other people

which of the following is a correct statement about a mixed economy?

in a mixed economy, most economic decisions are made in markets but the government plays a significant role in the allocation of resources

the underlying reason that centrally planned economies have been less efficient seems to be that such planned economies do not give as a great _____ for hard work and innovations as market economies do.

incentives

the groups of people that are most likely to get the tickets will be those for whom the expected marginal _____ of going to city hall on Monday morning are greater than the expected marginal _____

benefits, costs

Relative to a market economy, a centrally-planed economy would be expected to be

better at neither productive efficiency nor allocative efficacy because the absence of market-imposed competition negates the need of firm to satisfy consumer wants or produce using the lowest-cost methods.

how are economic resources allocated in a market economy?

by the decisions of households and firms interacting in markets

in a market system, how does society decide what goods and services will be produced?

consumers, firms, and the government determine what goods and services will be produced by the choices they make

if market economies are more economically efficient than centrally planned economies, there still might be reason to prefer having a centrally planned economy if it is more _____

equitable

the new machinery and equipment would be adopted more rapidly in a _____

market economy

efficiency means that goods are distributed in a way that _____, while equity means that goods are distributed in a way that _____.

maximizes benefits to society, is fair

A firm operating in a market economy has a strong incentive to be productively efficient and electively efficient because the former enables it to _____ while the latter ensure it of _____

minimize production costs, ample revenues

productive efficiency occurs when a good or service is produced at the lowest possible cost. Is this an efficient way to distribute the tickets?

no

today, which of the following countries has a centrally planned economy

north Korea

when does productive efficiency occur

productive efficiency occur when a good or service is produced at the lowers possible cost

a market system prevents people from getting as many goods and services as they want due to which of the following

their income

the three economic questions that every society must answer are

what goods will be produces, how will they be produced, and who will receive the goods?

in a market system, how does society decide who will recieve the goods and services produced?

who receives the goods and services produced depends largely on how income is distributed

does bill gates, the richest person in the world, face scarcity?

yes

is it necessary for all economic systems to limit services such as health care

yes