Which of the Following Is Not the Case When Social

question 26

Multiple Choice

Which of the following is not the case when social costs are greater than private costs?

• A)The market's price signals are flawed.
• B)Resources are allocated efficiently.
• C)There is market failure.
• D)External costs exist.

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Definitions:

Private-Sector Coercion

The exertion of pressure or compulsion on individuals or entities by private organizations or businesses, rather than by governments.

Market Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses, without substantial government intervention in the form of price controls.

Economic Efficiency

A situation where all resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Private-Sector Risk

The risk associated with the non-governmental sector, encompassing uncertainties in business environments, market dynamics, and financial operations.