According to the Equilibrium Principle

question 93

Multiple Choice

According to the equilibrium principle:

• A)unregulated markets tend to reach equilibrium prices and quantities without government regulation.
• B)once a market has reached equilibrium, price will not change.
• C)collective action cannot improve on individual action.
• D)market equilibrium exploits all opportunities for individual gain, but may not exploit gains possible through collective action.

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Definitions:

Foreclosure

In psychology, it refers to Marcia’s identity status where an individual commits to an identity without exploring options, often following authoritative figures or norms.

Free Will-Determinism

The philosophical debate regarding the extent to which humans have the freedom to make choices versus being influenced by external factors or destiny.

Erikson's Theory

A developmental theory by Erik Erikson that outlines eight stages of psychosocial development throughout the human life cycle.

Partially Deterministic

A concept in which outcomes are determined by a combination of deterministic and random (or probabilistic) factors.