Which of the Following Is Not an Equilibrium Condition in a General

question 57

Multiple Choice

Which of the following is not an equilibrium condition in a general equilibrium analysis of a competitive economy?

• A)Input markets are in equilibrium.
• B)The quantity supplied equals the quantity demanded.
• C)Factor incomes are evenly divided.
• D)The marginal rate of transformation equals the marginal rate of substitution.

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Definitions:

Consequential Damages

Damages that can be claimed and are intended to compensate a party for indirect losses as a result of not fulfilling a contractual obligation.

Nonconforming Goods

Products that fail to meet the quality, specifications, or performance standards outlined in a purchase agreement.

Lost Profits

Refers to the potential earnings a business was unable to realize due to wrongful actions by another party.

Insolvent

A financial state where an individual or entity cannot meet their debts as they become due.