Allocative Efficiency Occurs When

question 52

Multiple Choice

Allocative efficiency occurs when

• A) we cannot produce more of any good without giving up some other good that we value more highly.
• B) we cannot produce more of any one good without giving up some other good.
• C) marginal benefit exceeds marginal cost.
• D) opportunity costs are decreasing.

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Definitions:

Unconscionable Contracts

Agreements between parties that are so unfair or one-sided that they shock the conscience, often rendering them unenforceable in court.

Transfer Of Assets

The act of moving ownership of assets from one party to another, which could involve property, financial instruments, or other resources.

In Pari Delicto

In equal fault. A contract relationship when both parties to an illegal agreement are equally wrong, in the knowledge of the operation and effect of their contract.

Premeditation

The act of planning or considering something, especially a crime, beforehand.