When a Fixed Stock of Consumption Goods Cannot Be Reallocated

question 45

Multiple Choice

When a fixed stock of consumption goods cannot be reallocated among consumers in an economy without making at least some consumers worse off, the allocation satisfies:

• A)exchange efficiency.
• B)input efficiency.
• C)substitution efficiency.
• D)Walras' Law.

Calculate average variable costs based on given total costs and production output.

Analyze the cost-effectiveness of purchasing equipment or services for production based on their annual cost and marginal cost per unit.

Calculate the number of units a business should sell per month based on fixed and variable costs to maintain profitability.

Determine the optimal ratio of resources to utilize in production to minimize costs.

---

Definitions:

Compounded Quarterly

Interest calculation method where the interest is added to the principal four times annually, leading to increased growth over time due to the quarterly compounding effect.

Economic Value

The measure of the benefit provided by a good or service to an economic agent.

Bequest

A transfer of personal property or assets to beneficiaries through a will.

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, leading to interest on interest.