[15] ANSWER: b. a situation in which the market on its own fails to allocate resources efficiently.
TYPE: M KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y
[16] ANSWER: c. one person’s actions on the well-being of a bystander.
TYPE: M KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y
[17] ANSWER: a. emit too much smoke.
TYPE: M KEY1: C SECTION: 2 OBJECTIVE: 7 RANDOM: Y
[18] ANSWER: b. promote equity and to promote efficiency.
TYPE: M KEY1: C SECTION: 2 OBJECTIVE: 7 RANDOM: Y
[19] ANSWER: c. power of a single person (or small group of people) to unduly influence market prices.
TYPE: M KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y
[20] ANSWER: d. productivity
TYPE: M KEY1: D SECTION: 3 OBJECTIVE: 8 RANDOM: Y
[21] ANSWER: d. productivity.
TYPE: M KEY1: D SECTION: 3 OBJECTIVE: 8 RANDOM: Y
[22] ANSWER: a. amount of goods and services produced from each hour of a worker’s time.
TYPE: M KEY1: D SECTION: 3 OBJECTIVE: 8 RANDOM: Y
[23] ANSWER: b. an increase in the overall level of prices in the economy.
TYPE: M KEY1: D SECTION: 3 OBJECTIVE: 8 RANDOM: Y
[24] ANSWER: c. the value of money to fall.
TYPE: M KEY1: D SECTION: 3 OBJECTIVE: 8 RANDOM: Y
[25] ANSWER: d. In the short run, reducing inflation is associated with rising unemployment.
TYPE: M KEY1: D SECTION: 3 OBJECTIVE: 8 RANDOM: Y