Fill in the blank: When a chooser asks herself Is it worth it?, she is trying to evaluate the ________ of a particular project or plan of action.
A) technical efficiency
B) objective efficiency
C) economic efficiency
D) engineering efficiency
Question 2
Refer to the scenario above. Suppose you decide to buy a Toyota Corolla. You value the car for 10,000. You don't know it, but the car dealer values it for 8,500. Which of the following is true in this case?
A) There are no gains from trade.
B) There are gains from trade.
C) There are negative economies of scale.
D) There are positive economies of scale.
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