Which of the following are true?
a. Economists use the criterion of economic efficiency to judge the merit of alternative outcomes.
b. Undertaking an economic action will be efficient if it produces more benefits than costs for the individuals of the economy.
c. Undertaking an economic action will be inefficient if it produces more costs than benefits to the individuals.
d. All of the above are true.
D
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Suppose 10 workers jointly own and farm a piece of land. They all consume the farm's output in equal shares. If one worker decides to shirk and cuts her labor effort by 50 percent,
a. her consumption will decrease by 50 percent. b. her consumption will decrease by greater than 50 percent. c. her consumption will decrease by less than 50 percent. d. her consumption will not change.
The ultimate result of the multiplier-accelerator interaction is a(n)
a. lengthy period of economic growth and prosperity similar to the one experienced in the 1990s b. prosperity at an annual growth rate of about three percent, which is the rate of growth of full employment GDP c. noninterventionist government countercyclical fiscal policy d. need for the economy's rate of growth to grow or at least remain constant otherwise a positive but slower growth rate can spark an economy's downturn e. need for the economy to maintain its current level of consumption to justify the increased level of capital stock