A Third Way to Assess Competence Is to Focus on

question 6

Multiple Choice

A third way to assess competence is to focus on

• A)IADLs.
• B)PLIMs.
• C)levels of integrity.
• D)the number of friends a person has.

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Definitions:

External Cost

A cost borne by someone who does not participate in the transaction or decision that led to the cost, often associated with negative externalities.

Total Surplus

The sum of consumer and producer surplus in a market, indicating the overall economic benefit to society from market transactions.

Socially Efficient

An economic condition where the allocation of resources maximizes social welfare, often where marginal cost meets marginal benefit.

Negative Externalities

Costs that are suffered by a third party as a result of an economic transaction or activity, for which they are not compensated.