If the Current Allocation of Resources in the Market for Hammers

question 76

Multiple Choice

If the current allocation of resources in the market for hammers is inefficient,then it must be the case that

• A)producer surplus exceeds consumer surplus in the market for hammers.
• B)consumer surplus exceeds producer surplus in the market for hammers.
• C)the sum of consumer surplus and producer surplus could be increased by moving to a different allocation of resources.
• D)the costs that sellers of hammers are incurring could be reduced by moving to a different allocation of resources.

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Definitions:

Rorschach

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complexity algorithms, or both.

Personality Test

An assessment tool designed to measure and evaluate personality characteristics and psychological traits.

Reality Principle

The concept in psychoanalytic theory that represents the constant adjustment of seeking to satisfy basic desires with the demands of the external world.

Id

A concept in psychoanalytic theory representing the instinctual drives and primal impulses.