If External Costs Exist,the Competitive Free Market

question 146

Multiple Choice

If external costs exist,the competitive free market:

• A)allocates resources inefficiently.
• B)allocates resources efficiently.
• C)automatically corrects an overallocation of resources.
• D)automatically corrects an underallocation of resources.

Learn methods of calculating depreciation for residential and other types of real estate for tax purposes.

Explore the influence of technology on the market for collectibles and real estate.

Understand the factors influencing home value appreciation and real estate investment appeal.

Comprehend the legal and financial implications of owning, buying, and selling precious metals and diamonds.

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Definitions:

Forgetting Curves

Graphical representations that show how the ability to retain information decreases over time without rehearsal or practice.

Long-Term Memory

A durable and virtually limitless storage system in the brain for retaining information over long durations, including facts, experiences, and skills.

Mnemonic Device

A technique used to improve memory by associating complex information with simple, easily recallable aids like patterns, phrases, or images.

Peg-Word Method

A mnemonic strategy that involves linking numbers with items that rhyme with or resemble the numbers to remember a list of items.