If the Market for Diamonds Is a Monopoly, Then

question 71

Multiple Choice

If the market for diamonds is a monopoly, then

• A) there is an inefficient amount of resources allocated to the diamond market.
• B) the prices of diamonds are too low.
• C) diamond production is at the amount where the marginal social benefit equals the marginal social cost.
• D) the diamond market is efficient.

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Definitions:

Stereotype

A fixed overgeneralized belief about a particular group or class of people.

Prejudice

Preconceived opinion not based on reason or actual experience, leading to biased, unfair attitudes and actions towards others.

Conformity

The act of changing one's behavior to match the responses or norms of a group, often as a result of real or imagined group pressure.

Groupthink

A psychological phenomenon in which the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.