Which of the Following Is True? When There Are No

question 64

Multiple Choice

Which of the following is true? When there are no externalities,public goods,common resources,taxes or subsidies,then
i.allocative efficiency occurs when marginal benefit exceeds marginal cost by as much as possible.
ii.an a competitive equilibrium,resource allocation is efficient.
iii.fair rules require income transfers from the rich to the poor.

• A) only ii
• B) only i
• C) only iii
• D) i and ii
• E) i and iii

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Definitions:

Rhyolite

A mostly fine-grained, felsic igneous rock, generally of volcanic origin; can contain glass, volcanic ash, pieces of pumice, and variable amounts of visible crystals (phenocrysts).

Thermal Energy

The internal energy present in a system due to the random movements of its molecules or atoms.

Conduction

The process by which heat or electricity is directly transmitted through a substance when there is a difference of temperature or of electrical potential.

Phaneritic Texture

A texture of igneous rocks characterized by large, visible crystals, indicative of slow cooling magma.