-In a Free Market System, Competition Generates Economic Efficiency Only

question 221

Multiple Choice

-In a free market system, competition generates economic efficiency only when

• A) individuals take into account the full opportunity cost of their actions.
• B) consumers are motivated by a sense of the greater good, not their own self-interest.
• C) firms are motivated by a sense of the greater good, not their desire for profit.
• D) economic decisions are taken out the hands of individuals and placed in the hands of government officials.

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Definitions:

Lynching

Extrajudicial execution carried out by a group, bypassing legal sanction to enforce perceived justice or supremacy, often racially motivated.

Social Solidarity

Refers to (1) the degree to which group members share beliefs and values and (2) the intensity and frequency of their interaction.

Crowd Behavior

The study of how individual behavior is influenced by large groups of people, often leading to actions that individuals would not undertake on their own.

Routine Collective Action

Involves regularly occurring coordinated efforts by a group to achieve a common objective, often within the context of workplaces or social movements.