Which of the Following Is True? When There Are No

question 275

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:

Equation Complexity

A measure of the difficulty or intricacy of a mathematical equation, often based on the number of operations or variables involved.

Exponential Functions

Mathematical functions characterized by an expression in which a constant base is raised to a variable exponent.

Compound Interest

Interest for a loan or deposit that includes calculations on the original principal amount as well as the interest accumulated from earlier periods.

Decimal Multiplication

A mathematical operation involving the multiplication of numbers represented in decimal form.