A. the marginal cost of production does not equal society’s marginal benefit
B. the distribution is inequitable
C. economic growth is low
D. unemployment is high
Related Mcqs:
- We cannot say whether one allocation of resources is better than another allocation because ?
A. some people can’t count
B. some people may not be permanent resident
C. not all economic activity is legal
D. We can’t make value judgments to compare different people’s welfare - An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
A. worse off; worse off
B. better off; better off
C. better off; worse off
D. equal, unequal - Markets fail to produce an efficient allocation of resources, but government also fail because ?
A. elected officials will act selflessly for the good of society and ignore their own self interest
B. the managers of government agencies are trying to maximize the profit of their agency and they ignore the implications that this has on other departments
C. the optimal level of public goods may be too expensive for the society to produce
D. the measurement of social damages and benefits is difficult and imprecise - Polish economist Oskar Lange’s model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ?
A. market socialism
B. capitalism
C. mixed economy
D. monopoly - Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation ?
A. export promotion
B. import promotion
C. international commodity agreements
D. multilateral contracts - A competitive equilibrium is Pareto-efficient because ?
A. Producers are price takers
B. consumers and producers face the same prices
C. marginal costs and benefits are equal
D. prices equal marginal cost and benefit
E. All of the above - The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?
A. Stolpher-Samuelson theory
B. factor endowment theory
C. specific factors theory
D. overlapping demand theory - The Club of Rome Study, The Limits to Growth suggests that as natural resources diminish ?
A. capital increasingly replaces labor
B. technological change compensates for capital depletion
C. costs rise, leaving less capital for future investment
D. contingent valuation becomes critical - The resources in the economy do not include ?
A. Demand
B. Land
C. Labour
D. Capital - Which one of the following four agricultural resources by way of crops cultivated by man does not belong to the group comprising the remaining three ?
A. Coffee
B. Fruits
C. Sugarcane
D. None of these
