If Resources Are Allocated Efficiently in a Market Economy

question 45

Multiple Choice

If resources are allocated efficiently in a market economy:

• A) the way final goods and services are distributed does not matter to society.
• B) the outcome may not be socially desirable if distributional issues are also important.
• C) the outcome will always be socially desirable.
• D) each person's utility is maximized, and so the result is Pareto optimal.

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Definitions:

Gender Differences

Gender differences refer to the distinctions in characteristics and behaviors typically associated with being male or female, influenced by biological, psychological, and cultural factors.

Spatial Abilities

Skills that enable an individual to visualize and manipulate objects and their spatial relationship in the mind.

Prenatal Exposure

The exposure of an unborn fetus to substances, conditions, or behaviors that can have developmental consequences.

Androgens

Hormones that play a role in male traits and reproductive activity; testosterone is a primary example.