ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 8

that households supply. D. government regulations that provide a
minimum
income for all.
2) In a competitive market economy firms will select the least-cost
production
technique because: A. "dollar voting" by consumers mandates such a
choice. B. such
choices will result in the full employment of available resources. C. to
do so will
maximize the firms' profits. D. this will prevent new firms from
entering the
industry.
3) A leftward shift in the supply curve of product X will increase
equilibrium price to
a greater extent the: A. more inelastic the demand for the product. B.
more
elastic the supply curve. C. larger the elasticity of demand coefficient.
D. more elastic
the demand for the product.
4) Which of the following statements is true about productive and
allocative
efficiency? A. Realizing allocative efficiency implies that productive
efficiency