72. Economic efficiency would be primarily discussed in response to which of the fundamental questions about a competitive market economy? A. What will be produced? B. How is the output to be produced? C. How can the system accommodate change? D. Who is to receive the output? AACSB: Analytic Bloom's: Knowledge Learning Objective: 2-3 Level: Easy Topic: Five fundamental questions 73. In the market system, the costly techniques of production will be chosen by competitive firms because: A. Of consumer sovereignty B. Of the law of diminishing returns C. Profits will be highest with such techniques D. These techniques will result in full employment AACSB: Analytic Bloom's: Knowledge Learning Objective: 2-3 Level: Easy Topic: Five fundamental questions Suppose a firm can produce 70 of a hypothetical product, Zenia, by combining labor, land, capital, and entrepreneurial ability in each of the four ways shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit.
72. Economic efficiency would be primarily discussed in response to which of the fundamental questions about a competitive market economy? A. What will be produced? B. How is the output to be produced? C. How can the system accommodate change? D. Who is to receive the output? AACSB: Analytic Bloom's: Knowledge Learning Objective: 2-3 Level: Easy Topic: Five fundamental questions 73. In the market system, the costly techniques of production will be chosen by competitive firms because: A. Of consumer sovereignty B. Of the law of diminishing returns C. Profits will be highest with such techniques D. These techniques will result in full employment AACSB: Analytic Bloom's: Knowledge Learning Objective: 2-3 Level: Easy Topic: Five fundamental questions Suppose a firm can produce 70 of a hypothetical product, Zenia, by combining labor, land, capital, and entrepreneurial ability in each of the four ways shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit.
Test-Bank-Economics-18th-Edition-McConnell.docx