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Final

Economics 1021A/B Study Guide - Final Guide: Pearson Education, Perfect Competition, Sunscreen


Department
Economics
Course Code
ECON 1021A/B
Professor
Jeannie Gillmore
Study Guide
Final

This preview shows pages 1-3. to view the full 36 pages of the document.
Parkin/Bade, Economics: Canada in the Global Environment, 8e
Chapter 5 Efficiency and Equity
5.1 Resource Allocation Methods
1) When a market price allocates a scarce resource
A) everyone in the economy can use the resource.
B) only those who show interest can use the resource.
C) willingness-to-pay is not an issue.
D) ability to pay for the resource is less important than willingness-to-pay.
E) only those who are willing and able to pay get the resource.
Answer: E
Diff: 1 Type: MC
Topic: Resource Allocation Methods
2) In a command system, resources are allocated by
A) people who show interest to use the resources.
B) people who are able to pay for the resources.
C) market price.
D) the order of someone in authority.
E) those people who come first in line.
Answer: D
Diff: 1 Type: MC
Topic: Resource Allocation Methods
3) In the Canadian economy, the command system
A) is not used at all.
B) is used occasionally inside firms and government departments.
C) is used only by private companies.
D) is used extensively in place of markets.
E) is used extensively inside firms and government departments.
Answer: E
Diff: 1 Type: MC
Topic: Resource Allocation Methods
4) Majority rule allocates resources in the way that
A) politicians choose.
B) a majority of voters choose.
C) democracies choose.
D) all voters choose.
E) the military chooses.
Answer: B
Diff: 1 Type: MC
Topic: Resource Allocation Methods
Copyright © 2013 Pearson Canada Inc. 230
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Parkin/Bade, Economics: Canada in the Global Environment, 8e
5) A contest allocates resources to
A) a winner or a group of winners.
B) an athlete.
C) a gambler.
D) the government.
E) private firms.
Answer: A
Diff: 1 Type: MC
Topic: Resource Allocation Methods
6) Contests do a good job in resource allocation
A) under any circumstances.
B) when the efforts of the players are easy to monitor and reward directly.
C) when the efforts of the players are hard to monitor and reward directly.
D) when the first-come, first-served allocation method has failed.
E) only under a command system.
Answer: C
Diff: 1 Type: MC
Topic: Resource Allocation Methods
7) The first-come, first-served method of resource allocation allocates resources to
A) the wealthiest.
B) people who are willing to take risks.
C) people who are not willing to take risks.
D) the first in line.
E) honest, hard-working people.
Answer: D
Diff: 1 Type: MC
Topic: Resource Allocation Methods
8) Lotteries allocate resources to
A) those who work for the government.
B) those who come up lucky in a gaming system.
C) those who work for private firms.
D) people who are employed by gaming corporations.
E) those who are in command.
Answer: B
Diff: 1 Type: MC
Topic: Resource Allocation Methods
Copyright © 2013 Pearson Canada Inc. 231
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Parkin/Bade, Economics: Canada in the Global Environment, 8e
9) Lotteries work best
A) under any circumstances.
B) under the first-come, first served allocation method.
C) when there is no effective way to distinguish among potential users of a scarce resource.
D) when potential users of scarce resources are unknown.
E) under a command system.
Answer: C
Diff: 1 Type: MC
Topic: Resource Allocation Methods
10) When a scarce resource is allocated to someone who is the winner, the method of resource
allocation is
A) a lottery.
B) a contest.
C) first-come, first-served.
D) force.
E) personal characteristics.
Answer: B
Diff: 1 Type: MC
Topic: Resource Allocation Methods
11) What method of resource allocation depends on willingness-to-pay and ability-to-pay?
A) command
B) lottery
C) market price
D) first-come, first-served
E) force
Answer: C
Diff: 1 Type: MC
Topic: Resource Allocation Methods
Copyright © 2013 Pearson Canada Inc. 232
find more resources at oneclass.com
find more resources at oneclass.com
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