FIGURE 16- 1

question 94

Multiple Choice

FIGURE 16- 1
-Refer to Figure 16- 1.Suppose that the perfectly competitive market with no government intervention achieves equilibrium at point A.If the social marginal costs and social marginal benefits are represented by MC2 and MB0,respectively,then the competitive equilibrium quantity is

• A)too low for allocative efficiency.
• B)consistent with allocative efficiency.
• C)too high for allocative efficiency.
• D)not enough information to determine allocative efficiency.

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Definitions:

Personality Differences

Variations among individuals in regards to enduring patterns of thinking, feeling, and behaving.

Hofstede's Dimensions

A framework for cross-cultural communication, developed by Geert Hofstede, that describes the effects of a society's culture on the values of its members.

Cultural Personality

A term that may refer to the collective personality characteristics, attitudes, and traits shared by people within a particular culture.

Power Distance

A cultural dimension that describes the extent to which individuals within a society accept that power in institutions and organizations is distributed unequally.