When Is an Allocation of Resources Said to Be Inefficient

question 27

Multiple Choice

When is an allocation of resources said to be inefficient

• A)when a good is not being produced by the sellers with the lowest cost
• B)when producer surplus is not at a minimum
• C)when consumer surplus is not at a maximum
• D)when equilibrium is not an equitable distribution of resources

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Definitions:

Status Quo

The existing state of affairs or current condition, often used in the context of maintaining or challenging the existing situation or baseline.

Lewin's Approach

A model of change developed by Kurt Lewin, which includes the stages of unfreezing, changing, and refreezing to facilitate successful change implementation.

Thawing

The process of something frozen, such as ice or snow, becoming liquid or soft as it warms.

Refreezing

The final stage in the process of change, where new behaviors are solidified and integrated into normal operations.