Quiz no 2 Grade 12

Difficulty in having limited or scarce resources with which to do an infinite number of things lead us to having to make choice.

• True

• False

Economic efficiency is said to exist when it could be judged that all of our scarce resources are being used in the least possible way.

• True

• False

Economic efficiency is something that is always judged to be desirable. It represents the best possible solution to the economic problem

• True

• False

Economic efficiency is where scarce resources are used in the most efficient way to produce maximum output.

• True

• False

When both allocative and productive efficiency co-exist, the best possible use of scare resource is being made. And it is called efficient resource allocation.

• True

• False

Macroeconomics focuses on the economy as a whole.

• True

• False

Microeconomics focuses on individuals, households, and not firms.

• True

• False

A car assembly plant is using up-to-date technology, minimising the cost of production

• Productive efficiency

• Allocative efficiency

a baker has 10 customers wanting an iced doughnut. The baker had made exactly 10 that morning.

• Productive efficiency

• Allocative efficiency

when price is equal to marginal cost; firms are producing those goods and services most wanted by the customers.

• Productive efficiency

• Allocative efficiency