An Inefficient Allocation of Resources Will Occur When

question 13

Multiple Choice

An inefficient allocation of resources will occur when:

• A) decisionmakers are faced with the costs and benefits of their actions.
• B) there are clearly defined property rights.
• C) no alternative exists that would increase the welfare of society.
• D) decisionmakers are not faced with the benefits and costs of their choices.

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Definitions:

Stroop Effect

A demonstration of cognitive interference where a delay in the reaction time of a task occurs due to a mismatch in the name of a color and the color in which it is printed.

Saccades

Rapid, ballistic movements of the eyes that change the point of fixation, allowing the visual system to scan different parts of the environment.

Recovered Memories

Memories of events that were consciously forgotten or repressed, which are later recalled, sometimes with the help of therapy.

False Memories

Involves the recollection of events that did not happen or the distortion of actual events.