Question : 21) Which of the following situations describing a resource allocation : 1241569

21) Which of the following situations describing a resource allocation method most resembles the majority rule method?

A) Seventy percent of Austin’s chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets.

B) Lattes are sold at Starbucks.

C) Food from the Weld County Food Bank is distributed to families in need.

D) Jose works at Intel. His manager tells him what work needs to be completed each month.

E) Matt’s mother had the rule that whoever cuts the cake chooses their slice last.

22) In 2009, tickets to a Presidential Town Hall meeting were distributed to individuals through a random selection of those who registered on a website. The tickets were allocated by which method?

A) lottery

B) majority rule

C) contest

D) first-come, first-served

E) personal characteristics

23) The Ironman Hawaii randomly draws a few hundred slots from thousands of applicants for the race. The method of allocation for the opportunity to participate in the race is ________, and the method of allocation for determining the winner of the race is ________.

A) lottery; contest

B) contest; lottery

C) first-come, first-served; lottery

D) lottery; first-come, first-served

E) contest; command

24) The table above shows the production possibilities for an economy. When the economy produces a combination of 900 books and 50 loaves of bread,

A) production efficiency occurs because resources are not overused.

B) allocative efficiency is achieved because both goods are produced.

C) production efficiency is not achieved.

D) allocative and production efficiency are both achieved.

E) production efficiency is not achieved but allocative efficiency might be achieved.

25) Resource use is allocative efficient

A) when it is not possible to produce more of one good.

B) when we produce goods and services that we value most highly.

C) when most resources are fully employed.

D) at any point on the PPF.

E) at all points either on or within the PPF because all these production points are attainable.

26) Allocative efficiency refers to

A) producing the goods and services most highly valued.

B) using the least amount of labor to produce output.

C) producing the maximum possible amount of output.

D) obtaining the least output with the most inputs.

E) producing at any point on the PPF.

27) When allocative efficiency occurs,

A) an economy produces the goods and services most highly valued.

B) marginal benefit exceeds marginal cost by some amount.

C) technology must be increasing.

D) we can simultaneously produce more of all goods.

E) marginal benefit exceeds marginal cost by as much as possible.

28) To achieve allocative efficiency, an economy

A) must produce on its PPF.

B) does not necessarily need to be production efficient.

C) must have increases in technology.

D) might leave some resources unemployed.

E) can produce either on or within its PPF.

29) If an economy is allocatively efficient, it must be producing

A) beyond its production possibilities frontier.

B) inside its production possibilities frontier.

C) on its production possibilities frontier.

D) the goods and services that are the most expensive.

E) the goods and services that are the least expensive to produce.

30) When a society achieves allocative efficiency, it

A) is not achieving production efficiency.

B) is producing that combination of goods and services that society values most highly.

C) might or it might not be producing at a point on society’s PPF.

D) is producing a combination of goods and services whose marginal cost exceeds their marginal benefit.

E) is producing the combination of goods and services for which marginal benefit exceeds marginal cost by as much as possible.