Question : 41) Consider the following economic agents: a.the government b. consumers c.producers Who, in : 1387264

41) Consider the following economic agents:

a.the government

b. consumers

c.producers

Who, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy?

A) the government

B) producers

C) consumers

D) consumers and producers

E) the government, consumers and producers

42) In a modern mixed economy, who decides what goods and services will be produced?

A) only the producers

B) only consumers

C) only the government

D) all of the above

43) How are the fundamental economic decisions determined in China?

A) Individuals, firms, and the government interact in a market to make these economic decisions.

B) These decisions are made by the country’s elders who have had much experience in answering these questions.

C) The government decides because China is a centrally planned economy.

D) The United Nations decides because China is a developing economy.

44) When every good or service is produced up to the point where the last unit provides ________, allocative efficiency occurs.

A) a marginal benefit to society equal to the marginal cost of producing it

B) a marginal benefit to society greater than the marginal cost of producing it

C) a marginal benefit to society less than the marginal cost of producing it

D) a marginal benefit to society equal to zero

45) Voluntary exchange ________ economic efficiency because neither the buyer nor the seller would agree to a trade unless ________.

A) increases; they both benefit

B) increases; only one party benefits

C) decreases; neither benefit

D) decreases; they both benefit

46) All centrally planned economies

A) have been political dictatorships.

B) started out as market economies.

C) began as mixed economies.

D) have become mixed economies.

47) Mr. Peabody chooses to invest in companies that produce goods and services at the lowest possible cost. Mr. Peabody is investing in companies that are

A) allocatively efficient.

B) productively efficient.

C) guaranteed to make a profit.

D) all of the above

48) Mr. Peabody chooses to invest in companies that produce goods and services based on consumer preferences. Mr. Peabody is investing in companies that are attempting to be

A) allocatively efficient.

B) productively efficient.

C) guaranteed to make a profit.

D) all of the above

49) The town of Harmonia gives away all 500 tickets to its annual Founder’s Day Free Concert-in-the-Park to local residents. Each year, more than 500 people wish to attend the concert, so some of the residents who receive the free tickets sell them for as much as $75 each. Is a transaction where someone pays a resident $75 for a “free ticket” economically efficient?

A) No, people should never be allowed to sell items they received for free.

B) Yes, it was a voluntary exchange that benefited both parties.

C) No, the buyer paid too much for the ticket.

D) Yes, it is efficient only from the perspective of the seller and not from the perspective of the buyer.