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FALL 2016: 9/21 Flashcards | StudBud
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FALL 2016: 9/21
FALL 2016: 9/21
9 terms
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StudBud Administration
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170 plays
Economics
Flashcards
9 cards
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Practice quiz
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Questions
9
Answers
1
When the quantity produced is greater than the efficient quantity, MB > MC
FALSE
TRUE
2
Consumer surplus lies above the demand curve and below the supply curve
FALSE
TRUE
3
Deadweight loss is the lost surplus caused by more than or less than efficient quantity
TRUE
FALSE
4
T or F: A sunk cost is a cost that requires you to choose the 2nd best alternative
True
False
5
What cost describes what must be given up to obtain something?
efficiency cost
sunk cost
opportunity cost
economic cost
6
T or F: If a point is outside of the PPF, it is inefficient
False
True
7
What creates a price ceiling?
price below equilibrium
producing a deadweight loss
price above equilibrium
producing the inefficient quantity
8
T or F: Majority of economies are pure capitalism
True
False
9
Which one is not a economic idea?
economic decisions are made at the margin
people make rational decisions
people respond to incentives
people allocate resources efficiently
