Exhibit 7-13 -Informational Efficiency

question 116

Multiple Choice

Exhibit 7-13
-Informational efficiency

• A)can be achieved only when everyone knows everyone else's marginal benefits and marginal costs.
• B)occurs when buyers and sellers can communicate their respective marginal benefits and marginal costs to each other.
• C)is easily proven mathematically to occur in competitive markets, much like Pareto efficiency has been proven to occur in such markets.
• D)occurs in a centralized allocation system like that of the former Soviet Union.
• E)occurs when it is costless to send messages.

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Definitions:

Common Bile Duct

Duct that carries bile to the duodenum. It is formed from the merger of the cystic and hepatic ducts.

Cholangiography

A test that evaluates the function of the bile ducts by injection of a contrast medium directly into the common bile duct (during gallbladder surgery) or through a T-tube (after gallbladder surgery or during radiologic testing) and taking an X-ray.

Bile Ducts

Channels that carry bile from the liver and gallbladder to the duodenum for digestion.

Radiologist

A medical doctor specialized in diagnosing and treating diseases and injuries using medical imaging techniques, such as X-rays and MRI.