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

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Definitions:

Act of Joining

This refers to the process of connecting or uniting different elements, groups, or structures.

Eskimo System

Refers to a kinship system that distinguishes relatives based directly on their relationship to the ego or the speaker, common in Western societies.

Equal Prestige

Situation in which different statuses, roles, or positions in society are regarded as equally respectable.

Evaluation System

A structured process or set of criteria used for assessing performance, quality, or outcomes in various contexts.