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1. Lester Brown's pessimistic forecasts about the world economy did not materialize. 2. If any reallocation of resources can make some people better off without making others worse off, then such an economic system has reached economic efficiency. 3. Technical efficiency means producing at minimum possible cost. 4. One of the conditions of economic efficiency is that each supplier must produce an output where its marginal cost is the same as the marginal cost of every other supplier of that output. 5. A system in which a central authority is responsible for resource allocation is called a market. 6. Ben Bernanke has recently been nominated to continue as US Secretary of the Treasury. 7. Payap's sky blue office charges the IC $30/day to use a sky blue. This is an example of transfer price. 8. In general, economically efficient organizations will require their departments to buy services from other departments within the organization rather than buying outside, except in unusual circumstances. 9. It usually saves the buyer money if she/he buys goods on a CF basis rather than on a "free on board" basis. 10. When demand for good x is very price elastic, the burden of a government tax on good x will fall most heavily on the suppliers rather than the buyers. 11. When an e-commerce retailer of pencils offers "free-shipping" such pencils are likely to be priced higher than pencils for which shipping is not free. 12. If the Payap IC print shop charges departments .5 Baht/copy when local private shops will do the same printing for .55 Baht, then Payap is operating in an economically efficient way. 13. According to Adam Smith, bakers and butchers are typically motivated by their desire to serve others. 14. In a competitive labor market, a minimum wage set above the equilibrium wage rate will cause unemployment. 15. The incidence (burden) of taxes does not generally depend on whether the tax is collected from buyers or from sellers.
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