An Inefficient Allocation of Resources Will Occur When

question 13

Multiple Choice

An inefficient allocation of resources will occur when:

• A) decisionmakers are faced with the costs and benefits of their actions.
• B) there are clearly defined property rights.
• C) no alternative exists that would increase the welfare of society.
• D) decisionmakers are not faced with the benefits and costs of their choices.

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Definitions:

Trial Balance

A report listing all accounts and their balances at a particular date, used to ensure the total debits equal total credits in the accounting system.