An Efficient Allocation of Resources Requires Each Product's Price to Equal

question 153

True/False

An efficient allocation of resources requires each product's price to equal its marginal cost.

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors. It is what causes us to take action, whether to fulfill a need or achieve a goal.

Hygiene Factors

According to Herzberg's motivation-hygiene theory, these are factors that can lead to dissatisfaction if absent but do not necessarily motivate if present; they include aspects like salary, company policies, and working conditions.

Herzberg's Two-Factor Theory

A motivational theory proposing that job satisfaction and dissatisfaction arise from two distinct sets of factors: hygiene factors and motivators.

Maslow's Need Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a hierarchy of human needs from basic (physiological) to higher (self-actualization) needs.