A Boat Loaded with a Barrel of Water Floats in a Swimming

question 12

Multiple Choice

A boat loaded with a barrel of water floats in a swimming pool.When the barrel of water is poured overboard,the pool level

• A)rises.
• B)falls.
• C)remains unchanged.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product for which there are many substitutes.

External Benefit

A benefit that people other than the consumer or producer enjoy, resulting from a transaction or activity.

Economic Efficiency

A condition in which all available resources are utilized in the most effective manner to satisfy society's needs and wants, minimizing waste and maximizing value.

Market Price

The current market value at which an asset or service is up for sale or purchase.