-In a Free Market System, Competition Generates Economic Efficiency Only

question 221

Multiple Choice

-In a free market system, competition generates economic efficiency only when

• A) individuals take into account the full opportunity cost of their actions.
• B) consumers are motivated by a sense of the greater good, not their own self-interest.
• C) firms are motivated by a sense of the greater good, not their desire for profit.
• D) economic decisions are taken out the hands of individuals and placed in the hands of government officials.

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Definitions:

Conjunction

A word that connects phrases, clauses, or words together in a sentence; in logic, it represents a compound statement that is true only if both of its component statements are true.

Conjunct

An element of a conjunction in logic, being one of the propositions that are combined by "and" to form a conjunction.

Self-Contradiction

A statement that denies itself, presenting an inconsistency that renders the statement false.

Conjunction

In grammar, a word that connects clauses, sentences, or words; in logic, an operator that combines two boolean variables or propositions to return true only if both operands are true.