Question

Economists use the word equity to describe a situation in which Question 9 options: 1) each member of society has the same income 2) those in society who have the least will receive the most 3) the benefits of society's resources are distributed fairly among society's members 4) society is getting the most it can from its scarce resources

Productivity is defined as the

	1) amount of labor which can be saved by replacing workers with machines
	2) number of workers required to produce a given amount of goods and services
	3) actual amount of effort workers put into an hour of working time
	4) amount of goods and services produced from each hour of a worker's time

n a market economy, prices reflect the

Question 11 options:

	1) cost to society of making the good
	2) All of these responses are correct
	3) value of a good to society
	4) quantity society will demand at each price

An externality is the impact of

Question 12 options:

	1) society's decisions on the well-being of one person in the society
	2) a person's actions on that person's well-being
	3) society's decisions on the well-being of society
	4) one person's actions on the well-being of a bystander

Which of these activities will most likely result in an external benefit?

Question 13 options:

	1) A ten-year-old buys new Nikes with his allowance money he has saved
	2) A college student buys a deck of cards to play solitaire in her dorm room
	3) An elderly woman plants a flower garden on the vacant lot next to her house
	) 4)An executive purchases a book to read on a business trip Inflation causes Question 14 options: 1) the value of money to fall 2) incomes to fall 3) productivity to increase Which of these consumption activities will most likely impose an external cost? Question 15 options: 1) A construction worker eats a sandwich during his lunch break 2) A student in a dorm plays her CDs at 120 decibels late at night 3) A young mother exercises to an aerobics video 4) An executive plays a vigorous game of golf 4) the government to lower taxes

Answer 1

Question 9

Option 3. Equity is concerned with distribution of resources. The resources of the society should be distributed equitable amongst the population so everyone gets a share.

Productivity is defined as the Option 4 is the answer. Productivity is the relationship between input and output.

Question 11

Option 2. All are correct. Price is the value that is assigned to a product or service, how much consumers are willing to pay for.

Question 12

Option 4. Externality is the impact of an economic activity by an individual on a third party.

Question 13

Option 3. Since the flowers will benefit third parties.