Eco/531 Week 2

Which of the following is true? (Points : 1) Efficiency refers to the size of the economic pie; equality refers to how the pie is divided. Government policies usually improve upon both equality and efficiency. As long as the economic pie continually gets larger, no one will have to go hungry. Efficiency and equality can both be achieved if the economic pie is cut into equal pieces.

2. Pete receives $50 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $50. Finally he decides on Option B. The opportunity cost of this decision is (Points : 1) the value to Pete of the option he would have chosen had Option B not been available. the value to
Which of the following could reduce economic efficiency? (Points : 1) laws that encourage lawsuits. policies that redistribute income policies that impose significant restrictions on international trade All of the above are correct

8. In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker (Points : 1) decreased by 1.7 percent between 1998 and 2008. remained unchanged between 1998 and 2008. increased by 4.75 percent between 1998 and 2008. increased by 6.25 percent between 1998 and 2008.

9. In a particular country in 2000, the average worker needed to work 40 hours to produce 55 units of output. In that same country in 2008, the average worker needed to work 30 hours to produce 45 units of output. In that country, the productivity of the average worker (Points : 1) decreased by about 6 percent between 2000 and 2008. remained unchanged between 2000 and