A Competitive Equilibrium Is a State of Affairs in Which

question 34

Multiple Choice

A competitive equilibrium is a state of affairs in which

• A) markets clear, and output is maximized.
• B) output is maximized, and all agents are equally well-off.
• C) all agents are equally well-off and agents are price-takers.
• D) agents are price-takers, and markets clear.
• E) output and total factor productivity are maximized.

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Definitions:

Attribution Theory

A theory that explains how individuals infer the causes of their own and others' behaviors and events.

Selective Attention

The focusing of conscious awareness on a particular stimulus while ignoring others, essential in processing information efficiently.

Self-fulfilling Prophecy

A psychological phenomenon in which a person's or group's belief or expectation brings about its own realization or outcome.

Stereotyping

Making generalized assumptions about individuals or groups based on perceived characteristics, often leading to prejudiced attitudes or actions.