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

---

Definitions:

State of the Art

The most advanced and developed status of a technology, technique, or field at a particular time.

Unfamiliar Words

Words that are not well known or understood by an individual, potentially creating barriers in communication or comprehension.

Culminate

To reach a point of highest development or the final climax of a series of events.

Cross-cultural Communication

The process of recognizing, understanding, and respecting differences and similarities in communication across various cultures.