If There Is No Other Allocation That Will Allow the Economy

question 11

Multiple Choice

If there is no other allocation that will allow the economy to produce more of one good without producing less of another good, then a given allocation

• A) produces extra-normal profits
• B) is Pareto efficient
• C) Both answers are correct

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Definitions:

Protosigns

Primitive forms of sign language or gestural communication that may have been the precursors to spoken language in human evolution.

Crib Signs

Crib signs refer to visual or physical indicators, often in a baby's crib, that can signal various needs or states of well-being of the infant.

Idiosyncratic Signs

Unique or individual symbols, behaviors, or indicators that are characteristic of a particular person.

Overgeneralization

The cognitive bias involving the extension of conclusions or rules to broader contexts than is justified by the evidence, often seen in language acquisition and stereotyping.