When the Net Benefits of All Economic Activities Are Not

question 52

Multiple Choice

When the net benefits of all economic activities are not maximized, economists say the allocation of resources is _______ .

• A) inefficient
• B) incorrect
• C) efficient
• D) poorly done

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Definitions:

Purchase Money Securities Interest

A legal claim that allows a lender to have priority in a debtor's asset, provided the loan was used to purchase the asset.

Security

A document or other thing that stands as evidence of title to or interest in the capital, assets, property, profits, earnings, or royalties of any person or company, including any document commonly known as a security.

Chattel Mortgage

A legal arrangement where personal property is used as security for a loan, without the borrower surrendering possession of the property.

Secured Creditor

A lender who is given a specific asset as collateral for a loan, providing them with the right to claim said asset if the borrower defaults.