For an Equilibrium to Be Socially Optimal,it Must Be True

question 200

Multiple Choice

For an equilibrium to be socially optimal,it must be true that ________ to individual participants in the market are the same as those experienced by society as a whole.

• A) neither the costs nor the benefits
• B) the costs,but not the benefits
• C) the benefits,but not the costs
• D) both the costs and the benefits
• E) the taxes

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Definitions:

U.S. Market

The economic environment for buying and selling goods and services within the United States, encompassing all activities of production, promotion, and distribution.

Import Quota

A government-imposed limit on the quantity of a particular commodity that can be imported into a country over a specified period of time, used to protect domestic industries.

Domestic Producer

A company or individual that manufactures goods within their home country.

Foreign Producer

A company that produces goods or provides services in a country other than the one where the company is based.