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In a study described in your textbook (Hecht & LaFrance, 1998) , same-sex pairs of participants engaged in conversations in the lab. In some conversations one partner had power over the other in a mock job interview. Results showed that smiling behavior and self-reported positive affect were positively correlated among high-power participants, but uncorrelated among low-power participants. Which of the following accurately describes the implications of this finding?
Ideal Economic Efficiency
A state where resources are allocated in the most efficient way possible, maximizing total net benefit to society or economy.
Government Failure
Situations where government interventions in the economy lead to inefficient outcomes, worsening the problem they intended to solve.
Efficient Allocation
The optimal distribution of resources among competing uses, aiming to maximize the overall benefit or utility from those resources.
Government Failure
A situation where government intervention in the economy causes inefficiencies or leads to an allocation of resources worse than the free market.
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