Over the years, the U.S. economy has become increasingly

Answer the following statement(s) true (T) or false (F)

1. When supply and demand move at the same time, the change of one variable (price or quantity) can be predicted, but the direction of the effect on the other variable cannot be predicted with any certainty. 2. If the decrease in demand is greater than the increase in supply, the equilibrium price and equilibrium quantity will fall. 3. An increase in supply and an increase in demand causes a decrease in equilibrium quantity. 4. For HD televisions, the effect of increased supply pushing prices down outweighed the effect of increased demand pushing prices up.

Which of the following statements best describes economic efficiency?

a. Economic efficiency occurs when all choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will also increase the quantity of another. b. Economic efficiency occurs when no choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will also increase the quantity of another. c. Economic efficiency occurs when all choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will decrease the quantity of another. d. Economic efficiency occurs when no choices on the production possibilities frontier show productive efficiency because an increase the quantity of one good will decrease the quantity of another.