When the Allocation of Resources in a Free Market Environment

question 120

Multiple Choice

When the allocation of resources in a free market environment is such that a different allocation would increase society's welfare,economists say:

• A)market failure has occurred.
• B)the efficiency condition is met.
• C)decision makers have faced the full marginal benefits and marginal costs of their decisions.
• D)producers have maximized total cost.

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Definitions:

Affirmative Defense

A legal defense used in litigation where the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven that the defendant committed the alleged acts.

Motion for a Default Judgment

A legal request to the court to grant a judgment in favor of the applicant, due to the other party's failure to respond or appear in court.

Interrogatory

A formal set of written questions required to be answered under oath by a party in a lawsuit as part of the discovery process.

Quasi In Rem Jurisdiction

A legal principle allowing a court to exercise jurisdiction over an out-of-state defendant's property within the jurisdiction for the purpose of the lawsuit.