The Market Output Level Tends to Be Socially Optimal When

question 128

Multiple Choice

The market output level tends to be socially optimal when

• A)Demand equals supply in the market
• B)All costs and benefits are private and MSB=MSC
• C)There is neither a shortage nor a surplus of the product
• D)There are externalities in production
• E)There are externalities in consumption

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Definitions:

Investing Activities

Activities involving the buying and selling of long-term assets and investments, excluding those considered as cash equivalents.

Financing Activities

Activities that result in changes in the size and composition of the contributed equity and borrowings of an entity, often reflected on the cash flow statement.

Statement Of Cash Flows

A financial report that shows the cash inflows and outflows from operating, investing, and financing activities over a period.

Cash Flows

Refers to the net amount of cash and cash equivalents being transferred into and out of a business.