If Resources Are Allocated Efficiently

question 50

Multiple Choice

If resources are allocated efficiently,

• A)consumer surplus exceeds producer surplus.
• B)producer surplus exceeds consumer surplus.
• C)the sum of consumer surplus and producer surplus is maximized.
• D)marginal social benefit is maximized.
• E)marginal social cost is minimized.

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Definitions:

Intellectual Stimulation

Encouraging the generation of new ideas and critical thinking among followers by challenging existing assumptions.

Pent-up Emotions

Strong feelings that have been suppressed or not expressed for a long time and may eventually be released in a powerful or explosive manner.

Timely

Occurring at a suitable or opportune time; well-timed.

Ambiguous

Lacking clarity or certainty, open to more than one interpretation, or vaguely defined.