Allocative Efficiency Occurs Whenever

question 2

Multiple Choice

Allocative efficiency occurs whenever

• A) consumer surplus is maximized.
• B) it is impossible to produce a net benefit for society by changing the combination of goods and services produced.
• C) firms have maximized their profits.
• D) it is impossible to make someone in society better off without making someone else worse off.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Habituation

The process by which an individual becomes accustomed to a stimulus through repeated exposure, leading to a decrease in response.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, encouraging the formation of new behaviors.

Bayley III Scales

A comprehensive developmental tool that assesses the cognitive, language, motor, social-emotional, and adaptive behavior skills of infants and young children.