Resources Are Allocated Efficiently When

question 132

Multiple Choice

Resources are allocated efficiently when

• A)the exchange value of the resources to demanders equals the opportunity cost of the resources.
• B)the marginal benefit to demanders of the resources in the goods they purchase is equal to the marginal cost to suppliers of the resources they use in producing the goods.
• C)firms produce the quantity of output at which price is equal to marginal cost.
• D)a and b
• E)a, b, and c

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Definitions:

Reciprocity

A social norm of responding to a positive action with another positive action, fostering mutual benefit and cooperation.

Intergroup Conflict

A situation where members of different groups experience friction, opposition, or even hostility, often fueled by competition for resources or differences in values.

Theories

Systematically organized principles designed to explain and predict phenomena, based on observation, experimentation, and reasoning.

Stereotypes

Oversimplified and widely held beliefs or opinions about the characteristics, attributes, and behaviors of members of a particular group.