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Technician A says a variable displacement vane pump reduces the pumping load on the engine when the transmission requires less fluid to be pumped. Technician B says the flexplate is bolted to the input shaft of the transmission. Who is correct?
Short-sightedness Effect
The tendency of decision makers to prioritize immediate benefits at the expense of long-term gains.
Externalities
Costs or benefits that affect a party who did not choose to incur those costs or benefits, often leading to market failure if unaddressed by policy.
Rent-seeking Activities
Efforts to increase one’s share of existing wealth without creating new wealth, often through manipulation of the economic environment.
Economic Efficiency
Economic Efficiency occurs when a system allocates resources in a way that maximizes the production of goods and services at the lowest cost.
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