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:

Sagebrush Rebellion

A movement primarily in the Western United States advocating for more state and local control over federal land policies and management.

Environmental Laws

Statutes and regulations aimed at protecting the environment from harm caused by human activities, through the regulation of pollution, resource management, and conservation.

Regulations

Rules or directives made and maintained by authorities to regulate behavior or ensure standards.

Ecology

The branch of biology that deals with the relations of organisms to one another and to their physical surroundings.