Which Tools Allow Economists to Determine If the Allocation of Resources

question 162

Multiple Choice

Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?

• A)Profits and costs to firms
• B)Consumer and producer surplus
• C)The equilibrium price and quantity
• D)Incomes of and prices paid by buyers

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Definitions:

Personal Property

Items or assets that can be moved and are not fixed to one location, unlike real estate.

Accession

The act of acquiring additional property or improvements to existing property, which becomes an integral part of the original property.

Fire Insurance Policies

Insurance contracts that provide coverage for damage or loss to property due to fire.

Coverage

The extent to which an insurance policy or legal protection provides financial reimbursement against losses or damages.