The Instructor Has Just Handed Out a Long Final Exam

question 11

Multiple Choice

The instructor has just handed out a long final exam that contains different types of questions. What is the first thing you should do?

• A) Skim quickly through the entire test, paying special attention to the directions for each part.
• B) Start with the first question and move through the test as quickly as possible.
• C) Read all the questions carefully, answering the easy ones first.
• D) Look for the questions that are worth the most points and answer them first.

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Definitions:

Marginal Cost

The cost implicated in generating an added unit of a product or service.

Efficient Allocation

The distribution of resources in a way that maximizes the net benefit received by an economy.

Allocative Efficiency

A state of the economy where resources are apportioned in a way that maximizes the overall benefit to society.

Productive Efficiency

A state where an economy or entity cannot produce more of one good without producing less of another, utilizing all resources in the best possible way without waste.