An Economy in Which There Are No Market Failures and All

question 88

Multiple Choice

An economy in which there are no market failures and all industries are in a competitive long- run equilibrium is one where 1.allocative efficiency is achieved;
2.the economy is on the production possibilities boundary;
3.there is no incentive for firms to enter or leave industries.

• A)1 and 2
• B)1,2,and 3
• C)2 only
• D)1 and 3
• E)2 and 3

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Definitions:

Monochronic

A perception of time as linear and segmented into fixed, sequential units, where tasks are approached one at a time.

Informal

A term describing actions, relations, or communication that occur without official or formal structures or procedures.

Regressive

Characterized by moving backward or returning to a previous, less advanced state or condition.

Institutional Collectivism

The degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action.