We cannot say whether one allocation of resources is better than another allocation because ?

Related Mcqs:

1. 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

2. The allocation of resources is not efficient if ?

   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

3. 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

4. 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

5. Economics say that there has to be some from of rationing whenever ?

   A. inflation occurs
   B. there are externalities
   C. merit goods are produced
   D. there is excess demand

6. When economists say that people act rationally in their self interest, they mean that individuals _______?

   A. look for and pursue opportunities to increase their utility
   B. generally disregard the interests of others
   C. are mainly creatures of habit
   D. are unpredictable

   Submitted by: Mansoor Ul Haque

7. Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are ?

   A. perfect substitutes
   B. complements
   C. unrelated goods.
   D. substitutes.

8. When economists say that developing countries have a dualistic economy the 2 parts referred to are ?

   A. modern sector and traditional sector
   B. town and country
   C. men and women
   D. rich people and poor people

9. An outside professional conducts an examination of company’s accounting records in order to determine whether the company is maintaining records according to the generally accepted accounting principles. What this examination is called ?

   A. Checking
   B. Audit
   C. Stock-taking
   D. Accounting

10. When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ?

    A. there are no benefits to the public since a public good is not excludable
    B. the benefits are infinite because a public good is not rival and an infinite amount of people can consume it at the same time
    C. one can never place a value on human life or the environment
    D. respondents to naires have little incentive to tell the truth.