Markets Work Well for Allocating _______ Efficiently, but Not Always

question 16

Multiple Choice

Markets work well for allocating _______ efficiently, but not always so well for allocating _______.

• A)private goods; public goods
• B)public goods; private goods
• C)common resources; public goods
• D)public goods; common resources

---

Definitions:

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Beauty Premium

The phenomenon where individuals perceived as more attractive than average enjoy advantages in aspects such as employment, earning potential, and social recognition.

Marginal Product

The additional output that is produced by utilizing one more unit of a particular input, holding all other inputs constant.

Signaling Theory

A theoretical framework explaining how individuals and businesses convey information about themselves to differentiate from others, often in contexts like job markets or product quality.