The Competitive Equilibrium Allocation Is the Allocation of Goods

question 13

Multiple Choice

The competitive equilibrium allocation is the allocation of goods

• A) that does not allocate more than the total amount of goods available in the economy
• B) in which agents consume exactly the quantities of the goods that the agents initially possessed
• C) determined by a competitive equilibrium

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Definitions:

Same Behaviors

Repetitive actions or conduct exhibited by individuals in similar circumstances.

Laissez-Faire

An economic doctrine or approach that opposes the over-involvement of government in business, advocating minimal regulations.

Pluralistic

Relating to a system or society that appreciates, recognizes, and accommodates a diversity of cultures, beliefs, or values.

Consensual

Agreed upon by all parties involved; in the context of relationships, actions, or decisions, it means having the explicit permission from everyone involved.