All of the Following Statements About the Free Market Equilibrium

question 40

Multiple Choice

All of the following statements about the free market equilibrium output are equivalent except:

• A) Total surplus is maximized.
• B) There is zero dead-weight loss.
• C) There are no allocations that a Pareto preferred.
• D) There is positive dead-weight loss.

---

Definitions:

Procedural Unfairness

A situation where the methods or processes adopted in decision-making or dispute resolution are unjust or biased.

Dissatisfied

Feeling of discontent or displeasure resulting from unmet expectations or experiences, particularly in the context of products, services, or interpersonal relationships.

Equity Theory

A theory in social psychology that posits individuals are motivated by fairness in the rewards they receive for their efforts compared to others.

Process

A series of actions, changes, or functions that are intended to achieve a particular result.