As Consumers Make Choices in the Marketplace, They Reveal Information

question 137

Multiple Choice

As consumers make choices in the marketplace, they reveal information about their:

• A) political beliefs.
• B) production costs.
• C) ability to pay for goods and services.
• D) technology.

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Definitions:

Pareto Optimal

A state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Initial Endowment

The initial quantity of goods, services, assets, or resources that an individual, institution, or economy possesses.

Pareto Optimal

A situation where resources are distributed in such a manner that it's not feasible to rearrange them to benefit someone without adversely affecting at least another individual or preference standard.

Initial Endowment

The initial quantity of goods, resources, or wealth that an individual or entity possesses at the start of a period or game.