The Equilibrium Price and Quantity in a Market Usually Produce

question 52

Multiple Choice

The equilibrium price and quantity in a market usually produce allocative efficiency because

• A) all consumers who want the good are satisfied.
• B) marginal benefit and marginal cost are equal at that point.
• C) equilibrium ensures an equitable distribution of output.
• D) the excess of goods produced at equilibrium guarantees that all will have enough.

---

Definitions:

Individualist

A person who prioritizes independence and self-reliance, often valuing personal goals and self-expression over collective goals.

Collectivist Groups

Societies or groups that prioritize the needs and goals of the group over the individual, emphasizing interdependence, cooperation, and communal values.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or social pressures.

Groupthink

A psychological phenomenon wherein the desire for harmony within a decision-making group leads to irrational or dysfunctional decision-making outcomes.