A Condition Necessary for a Market to Achieve Economic Efficiency

question 135

Multiple Choice

A condition necessary for a market to achieve economic efficiency is that the market:

• A) demand curve must include all opportunity costs imposed on society of producing the good.
• B) demand curve must exclude the willingness to pay of all members of society who benefit from the good.
• C) supply curve must include the willingness to pay of all members of society who benefit from the good.
• D) supply curve must include all opportunity costs imposed on society of producing the good.

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Definitions:

Skill

An ability or expertise developed through practice and training, aimed at performing specific tasks effectively.

Participation

Involvement or taking part in a particular process, activity, or decision, typically within an organizational or group setting.

Ohio State Model

A leadership theory that derives from studies conducted at Ohio State University, identifying two dimensions of leadership behavior: consideration and initiating structure.

Initiating Structure

The degree to which a leader clearly defines and structures their role and the roles of their subordinates towards achieving set objectives.