Markets Are Usually Preferred by Economists for Efficient Transactions

question 42

Multiple Choice

Markets are usually preferred by economists for efficient transactions. However, Ronald Coase noted that administrative solutions may be superior because market transactions are:

• A) never at the equilibrium price.
• B) not costless.
• C) always result in a price that clears the market.
• D) hindered by technological change.

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Definitions:

Social Facilitation

The enhancement of a person's performance when doing simple or well-practised tasks because of the presence of others.

Dominant Response

The most common or likely reaction that a person exhibits in response to a specific situation or stimulus.

Social Facilitation Theory

The theory that the presence of others enhances an individual's performance on simple or well-learned tasks but may impair performance on complex or new tasks.

Social Facilitation Theory

The concept that an individual's performance is enhanced when they are observed by others.