The Terms Equality and Efficiency Are Similar in That They

question 157

Multiple Choice

The terms equality and efficiency are similar in that they both refer to benefits to society. However, they are different in that

• A)equality refers to uniform distribution of those benefits and efficiency refers to maximizing benefits from scarce resources.
• B)equality refers to maximizing benefits from scarce resources and efficiency refers to uniform distribution of those benefits.
• C)equality refers to everyone facing identical tradeoffs and efficiency refers to the opportunity cost of the benefits.
• D)equality refers to the opportunity cost of the benefits and efficiency refers to everyone facing identical tradeoffs.

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Definitions:

Monopsony Power

A market condition where there is only one buyer for a product or service, giving that buyer significant control over prices.

Price

Price is the amount of money expected, required, or given in payment for something, playing a central role in the economics of market transactions.

Good

An item or product that can be bought, sold, or traded, contributing to an economy's wealth or resources.

Monopsonist

A market condition in which there is only one buyer for a product or service, giving the buyer substantial power over prices.