An Economy in Which There Are No Market Failures and All

question 110

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

---

Definitions:

Endocrine System

The body’s “slow” chemical communication system; a set of glands that secrete hormones into the bloodstream.

Sensory Neurons

Neurons that carry incoming information from the sensory receptors to the brain and spinal cord.

Interneurons

Neurons within the brain and spinal cord that communicate internally and intervene between the sensory inputs and motor outputs.

Motor Neurons

Neurons that carry outgoing information from the brain and spinal cord to the muscles and glands.