Question : 51) Refer to the Article Summary. The article mentions increased : 1244569

51) Refer to the Article Summary. The article mentions increased economic equality is needed in terms of wealth, and for some people this means a more equitable distribution of wealth. Would an equitable distribution of wealth necessarily be the most efficient distribution of wealth?

A) Yes, equitable and efficient are two different words which have the same definition.

B) Yes, in order for the distribution to be equitable, it must also be efficient.

C) No, it is impossible to have an economically efficient distribution which is also an equitable distribution.

D) No, an economically efficient distribution of wealth would not necessarily be equitable.

52) Trade-offs force society to make choices when answering what three fundamental questions?

A) What will be the prices of goods and services; how will these goods and services be produced; and who will receive them?

B) What goods and services to produce; how will these goods and services be produced; and who receives them?

C) Who gets jobs; what wages do workers earn; and who owns what property?

D) How much will be saved; what will be produced; and how can these goods and services be fairly distributed?

53) Every society faces economic trade-offs. This means

A) some people live better than others do.

B) not everyone can have enough goods to survive.

C) producing more of one good means less of another good can be produced.

D) society’s output cannot be made available to all.

54) Which of the following statements is false?

A) Anytime you have to decide which action to take you are facing an economic trade-off.

B) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as a stock clearance sale.

C) Every individual, no matter how rich or poor, is faced with making trade-offs.

D) Economics is a social science that studies the trade-offs we are forced to make because of scarcity.

55) Which of the following is an example of an economic trade-off that a firm has to make?

A) whether it is cheaper to produce with more machines or with more workers

B) deciding why consumers want its products

C) whether or not consumers will buy its products

D) deciding what profit margin it desires for its products

56) Opportunity cost is defined as

A) the benefit of an activity.

B) the monetary expense associated with an activity.

C) the highest valued alternative that must be given up to engage in an activity.

D) the total value of all alternatives that must be given up to engage in an activity.

57) The Stogie Shop, a cigar store in the mall, sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each. What is the opportunity cost of buying a hand-rolled cigar?

A) 4 machine-made cigars

B) 1/4 of a machine-made cigar

C) $10.00

D) $2.50

58) Ted quits his $60,000-a-year job to be a stay-at-home dad. What is the opportunity cost of his decision?

A) 0 since he will no longer be earning a salary

B) depends on the “going rate” for stay-at-home dads

C) at least $60,000

D) the value he attributes to the joy of parenting

59) Who receives the goods and services produced in the United States depends largely on

A) how income is distributed.

B) how the goods and services are produced.

C) what goods and services are produced.

D) government redistribution.

60) Fast food restaurants produce a range of menu items such as hamburgers, chicken sandwiches, salads, and french fries. What fundamental economic question are they addressing by offering this range of items?

A) How to produce goods that consumers want?

B) Why produce a variety of menu items?

C) What to produce?

D) Who to produce the menu items for?