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:

Infant Cry

A vocalization by infants as a primary means of communication, indicating needs or discomfort.

Hunger

The physical sensation or condition of needing food, resulting from the body's energy requirements not being met.

Fear

An emotional response to perceived threats or danger, involving physiological and behavioral reactions.

Prostaglandins

A group of lipid compounds that have diverse hormone-like effects in animals, including inflammation and pain mediation.