The Optimal Mix of Output May Not Be Produced by an Economy

question 40

Multiple Choice

The optimal mix of output may not be produced by an economy because of the existence of

• A)Inequity.
• B)Internalities.
• C)Public goods.
• D)Production possibilities.

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Definitions:

Preexisting Duty

An obligation that one is already legally required to perform, which cannot be used as consideration for a new contract.

Legally Sufficient Consideration

Consideration that is considered to be enough or adequate under the law for a contract to be binding.

Preexisting Duty

An obligation that one party already owes under the law or another agreement, which cannot serve as consideration for a new contract.

Cost of Doing Business

The total expenses incurred by a company in operating its business, including manufacturing, marketing, and administrative costs.