Econ Unit 1 FA Dummy 6, 2025-26

A government deciding between spending on healthcare or education is facing a:

• Trade-off

• Market equilibrium

• Demand curve shift

• Supply shock

What term describes an economy where no one can be made better off without making someone else worse off?

• Equity

• Efficiency

• Elasticity

• Marginal cost

Efficiency in economics means:

• Resources are allocated so no improvement can help one without hurting another

• Everyone gets an equal share of resources

• Maximum production regardless of cost

• Government controls prices

The concept of economic efficiency can best be defined as:

• When markets fail to allocate resources properly, leading to collapse

• When there is no way to make anyone better off without hurting someone else

• The ability to produce goods at the lowest cost

• Maximizing profits for the biggest firms in the market

Which term fits this definition: no possible way to improve one person’s well-being without reducing another’s?

• Efficiency

• Monopoly

• Scarcity

• Opportunity cost

Suppose a community divides resources so that increasing one person’s income means decreasing another’s. This situation shows:

• Market failure

• Efficiency

• Inflation

• Unemployment

If a factory produces goods so that changing the process would benefit one worker but harm another, this is an example of:

• Inequality

• Efficiency

• Externality

• Price discrimination

A healthcare system is considered efficient when it provides services without making any patient worse off while improving others’ health. This best illustrates:

• Efficiency

• Market equilibrium

• Consumer surplus

• Budget constraint

When a government policy makes some citizens better off but causes harm to others, the economy is:

• Inefficient

• Efficient

• Inelastic

• Monopolistic

What term refers to the technical means used to produce goods and services?

• Innovation

• Technology

• Capital

• Labor