ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 9

has been realized. B. Productive efficiency can only occur if there is
also allocative
efficiency. C. Productive efficiency and allocative efficiency can only
occur together;
neither can occur without the other. D. Society can achieve either
productive
efficiency or allocative efficiency, but not both simultaneously.
5) Since their introduction, prices of DVD players have fallen and the
quantity
purchased has increased. This statement: A. suggests that the supply
of DVD
players has increased. B. suggests that the demand for DVD players
has increased.
C. constitutes an exception to the law of supply in that they suggest a
downward
sloping supply curve. D. constitutes an exception to the law of
demand in that they
suggest an upward sloping demand curve.
6) Camille's Creations and Julia's Jewels both sell beads in a
competitive market. If at
the market price of $5, both are running out of beads to sell (they can't
keep up with
the quantity demanded at that price), then we would expect both
Camille's and