Question : 11) Allocative efficiency actively sought A) by profit-maximizing firms in all : 1384259

Economics

11) Allocative efficiency is actively sought

A) by profit-maximizing firms in all market structures.

B) only by perfectly-competitive firms.

C) only by profit-maximizing imperfectly-competitive firms.

D) by none of the firms in any market.

E) by all firms in all markets.

12) Productive efficiency (at the level of the firm) is a goal that is sought

A) by profit-maximizing firms in all market structures.

B) only by perfectly competitive firms.

C) only by profit-maximizing imperfectly competitive firms.

D) by no firms in any market.

E) only by profit-maximizing firms in an oligopolistic market structure.

13) Allocative efficiency is a property of the behaviour of

A) individual firms.

B) all firms in an industry.

C) perfectly-competitive firms.

D) monopolies.

E) the overall economy.

14) Allocative efficiency concerns

A) producing outputs at lowest possible cost.

B) the allocation of resources such that total economic surplus is maximized.

C) encouraging monopoly if it generates innovation.

D) discouraging all monopoly firms.

E) the equitable distribution of resources.

15) At the level of the industry, the condition for productive efficiency is that

A) goods are allocated equitably.

B) there are no idle resources in the industry.

C) MC = P for all goods.

D) MRP = P for all inputs.

E) MC is equal for all firms in the industry.

16) We can safely say that each point on a country’s production possibilities boundary (PPB) is

A) allocatively efficient.

B) one at which P = MC for all goods.

C) productively efficient.

D) Pareto optimal.

E) not productively efficient.

17) An economy in which there are no market failures and all industries are in a competitive long-run equilibrium is one where

1. allocative efficiency is achieved;

2. the economy is on the production possibilities boundary;

3. there is no incentive for firms to enter or leave industries.

A) 1 and 2

B) 2 and 3

C) 1 and 3

D) 1, 2, and 3

E) 2 only

18) Consider a monopolistically competitive industry in long-run equilibrium. Will this industry be productively efficient?

A) Yes. Since the firms are in long-run equilibrium, they will all be producing at the minimum of their LRAC curves.

B) Yes. Since the firms are in long-run equilibrium, they will all be operating on their LRAC curves.

C) Yes. In long-run equilibrium, each firm is producing at an output level where price is equal to marginal cost.

D) No. Firms are selling their output at a level where price exceeds marginal cost and thus, by definition, cannot be productively efficient.

E) No. Since firms are selling differentiated products and there is no industry-wide price, we cannot conclude that marginal cost will be equated across all firms.

19) Consider an industry with three profit-maximizing firms producing identical soccer jerseys. At their current levels of output, Firm A has a MC of $22, Firm B has a MC of $26, and Firm C has a MC of $27. Each firm is equating price and marginal cost and is operating on their LRAC curve. Which of the following statements is definitely true?

A) Each firm and the industry are productively efficient.

B) Each firm is productively efficient but the industry is not.

C) The industry is productively efficient but each firm is not.

D) Each firm is allocatively efficient but the industry is not.

E) Each firm and the industry are allocatively efficient.

20) Refer to Figure 12-1. Suppose each of Firms A, B, and C are producing 500 kilos of potatoes. Is this industry productively efficient?

A) No, because the marginal cost curve for each firm has a different slope.

B) Yes, because output is equated for all firms.

C) No, because each firm could easily produce more than 500 kilos.

D) No, because marginal costs are not equated for all firms.

E) It is not possible to say whether this industry is productively efficient because we do not know the market price of the product.

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July 1, 2023

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.