When Allocative Efficiency Occurs

question 86

Multiple Choice

When allocative efficiency occurs,

• A) an economy produces the goods and services most highly valued.
• B) marginal benefit exceeds marginal cost by some amount.
• C) technology must be increasing.
• D) we can simultaneously produce more of all goods.
• E) marginal benefit exceeds marginal cost by as much as possible.

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Definitions:

Goal-Related Emotions

Emotions that are directly linked to the attainment or non-attainment of one's goals, such as satisfaction, frustration, or joy.

Temperament

Involves individual differences in behavioral styles, emotions, and characteristic ways of responding.

Cognitive Appraisal

The process of evaluating and interpreting an event or situation that leads to specific reactions in different people, important in understanding stress and emotions.

Emotional Competence Skills

The abilities related to recognizing, understanding, expressing, and regulating one's own emotions as well as those of others.