Y11 Econ Rev Sheet - Unit 2 Topic 1

When a company only produces what society desires, it is called _____.

• Allocative resources

• A great day

• Allocative efficiency

• Allocative deficiency

What type of products are made using the principle of allocative efficiency?

• Those not wanted by society

• Those demanded by society

• Those the company thinks are best for society

• Those that are large in size

In productive efficiency, what is the most important consideration regarding the use of resources?

• That they are wasted

• That there is the least amount of waste

• That a company use many different resources

• There are no resources

When is allocative efficiency achieved?

• When companies decide to market a particular good

• When one party is happy with the exchange of goods

• When one group does not benefit at the expense of another during the process of using resources to produce certain goods

• During all market transactions involving production with limited resources

Firms in very competitive markets are not likely to be _____.

• Dynamically efficient

• Allocatively efficient

• Productively efficient

• Super efficient

What is NOT a feature of perfect competition?

• There are no barriers to enter the market.

• The top selling firm controls the price.

• Advertisement is not needed in a perfect competition because each firm sells all their goods and they are aware of all knowledge pertaining to those goods.

• All of the knowledge, such as price, pertaining to the goods, is equally dispersed among all buyers and sellers.

How do barriers to entry affect the number of producers when the market is in monopolistic competition?

• Barriers to entry alone don't have a substantial effect on the number of producers in an industry.

• As barriers to entry rise, more and more producers join the industry.

• The lower the barriers to entry, the fewer producers there will be.

• The lower the barriers to entry, the more producers there will be.

How often does perfect competition happen in the real world?

• Never

• Often

• Vary rarely

• Always

As a market structure, monopolistic competition offers goods and services _____.

• that only differ in price

• that do not have substitutes outside the industry

• that have a perfect substitute from another industry

• from a single firm

Which of the following choices available to a consumer seeking to make a purchase does NOT represent a monopolistically competitive market?

• Deciding to purchase an iced coffee, an iced tea, or a smoothie.

• Lawn mowing services from a landscape company or college student start-up company

• all of them are correct

• Pizza delivered from a local restaurant or franchise chain