Question

Answer True or False for all questions:

1. A society that relies on a market-based economy will always protect the natural environment.

2. With the technological developments in the twenty-first century, productivity growth is no longer an important factor in economic well-being.

3. The minimum wage is an example of a government price ceiling and results in a reduction in unemployment.

4. Efficient production can be carried out anywhere on or beyond the production possibilities frontier.

5. An economist would predict that if the government imposes price controls on medical care, the result will be an increase in the supply of affordable care in the United States.

6. Black markets can generally be eliminated when price ceilings are enacted.

Answer 1

Dear Student,

Below are the answer to your question

1. A society that relies on a market-based economy will always protect the natural environment- TRUE

Interpretation

Most importantly, environmental regulation saves the economy billions by preventing the negative health effects associated with pollution. The estimated health benefits from the Clean Air Act are “two orders of magnitude greater than the employment costs of the policy

2. With the technological developments in the twenty-first century, productivity growth is no longer an important factor in economic well-being- FALSE

Interpretation

Increases in output can only be due to increases in the inputs to the production process, or to the efficiency with which they are used. .with growth in productivity, an economy is able to produce—and consume—increasingly more goods and services for the same amount of work

3. The minimum wage is an example of a government price ceiling and results in a reduction in unemployment- FALSE

Interpretation

A price ceiling is a legal maximum price that one pays for some good or service. A government imposes price ceilings in order to keep the price of some necessary good or service affordable

4. Efficient production can be carried out anywhere on or beyond the production possibilities frontier- FALSE

Interpretation

Productivity on the machine shop floor depends on a combination of efficient employees, equipment and processes. Before you can adopt any method for productivity improvement, you will need to measure your input and resource planning

5. An economist would predict that if the government imposes price controls on medical care, the result will be an increase in the supply of affordable care in the United States-TRUE

Interpretation

At their most extreme, reforms such as “Medicare for all” call for a complete government takeover of the health care system. Proponents of single payer reforms claim that only a complete government takeover of the health care sector can eliminate the health care sector’s inefficiencies and ensure 100 percent patient coverage.

6. Black markets can generally be eliminated when price ceilings are enacted - TRUE

Interpretation

A black market is economic activity that takes place outside government-sanctioned channels. Black market transactions usually occur “under the table” to let participants avoid government price controls or taxes

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