Under Perfect Competition, the Market Mechanism, Without Any Government Regulation

question 16

Multiple Choice

Under perfect competition, the market mechanism, without any government regulation, is capable of

• A)allocating resources efficiently.
• B)solving equity problems.
• C)making the average cost of labor equal to the average cost of all commodities.
• D)making more income available to the poor.

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Definitions:

Ethical Issue

A problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right or wrong, ethical or unethical.

Greenwashing

Practices by companies to falsely promote their products or policies as environmentally friendly when they are not.

Promotion-Related Ethical Issue

This refers to moral dilemmas arising from marketing tactics, such as misleading advertisements or targeting vulnerable populations.

Social Entrepreneurship

The practice of starting businesses with the aim of solving social problems or providing social benefits.